Pradhan Mantri Fasal Bima Yojana

In News

• Recently, the Union Ministry of Agriculture and Farmers Welfare stated that it is open to taking pro-farmer changes in Pradhan Mantri Fasal Bima Yojana (PMFBY) in response to the recent climate crisis and rapid technological advances.

More about the Pradhan Mantri Fasal Bima Yojana

• Aim:
  • A flagship scheme of the Government of India, PMFBY aims to provide financial support to farmers suffering crop loss/damage arising out of natural calamities. 
• Objectives:
  • To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases.
  • To stabilise the income of farmers to ensure their continuance in farming.
  • To encourage farmers to adopt innovative and modern agricultural practices.
  • To ensure flow of credit to the agriculture sector. 
• Implementing Agency:
  • The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW).
• Payment of premium:
  • Farmers have to pay a maximum of 2 percent of the total premium of the insured amount for Kharif crops, 1.5 percent for rabi food crops and oilseeds as well as 5 percent for commercial/horticultural crops.
  • The balance premium is shared by the Union and state governments on a 50:50 basis and on a 90:10 basis in the case of northeastern states.
• 2020 revamp:
  • The scheme was revamped enabling voluntary participation of the farmers. 
  • It also made it convenient for the farmer to report crop loss within 72 hours of the occurrence of any event – through the Crop Insurance App.
• Grievance Redressal:
  • Through its State/District Level Grievance Committee’s, the scheme also enables farmers to submit their grievances at the grassroots level.
• Other Highlights:
  • Claims are worked out on the basis of shortfall in actual yield, vis-a-vis the threshold yield in the notified area.
  • There is no upper limit on Government subsidies. 
  • The premium rates to be paid by farmers are very low and the balance premium is paid by the Government to provide the full insured amount to the farmers.
  • The scheme will be launching a doorstep distribution drive to deliver crop insurance policies to the farmers ‘Meri Policy Mere Hath’ in all implementing States.
• Status & Claims:
  • PMFBY is currently the largest crop insurance scheme in the world in terms of farmer enrolments, averaging 5.5 crore applications every year and third largest in terms of premium received. 
  • Over 36 crore farmer applications have been insured under PMFBY, with over INR 1,07,059 crores of claims have already been paid under the scheme as of 4th February, 2022.

Source: LM