Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship agricultural insurance scheme in India aimed at providing financial support to farmers suffering crop losses due to natural calamities. Launched in 2016, PMFBY replaces the previous two crop insurance schemes – National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). The scheme is administered by the Ministry of Agriculture & Farmers Welfare and regulated by the General Insurance Corporation of India (GIC).
Objectives of PMFBY:
The primary objectives of PMFBY are as follows:
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Financial Protection for Farmers: PMFBY aims to provide financial support to farmers in the event of crop failure or damage due to natural calamities.
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Risk Mitigation: The scheme aims to mitigate the financial risks associated with farming, providing a safety net for farmers.
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Increase in Farmer Confidence: By reducing the financial burden of crop losses, PMFBY seeks to improve the confidence and resilience of farmers.
Coverage and Premium:
Under PMFBY, all farmers including sharecroppers and tenant farmers are eligible to enroll. The scheme covers all food crops, oilseeds, and annual commercial/horticultural crops. The premium rates are highly subsidized, with farmers required to pay only a nominal amount (2% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for horticulture crops). The rest of the premium is split equally between the central and state governments.
Key Features of PMFBY:
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Comprehensive Coverage: PMFBY provides comprehensive coverage against yield losses due to natural calamities such as drought, floods, pests, and diseases.
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Seasonal Agricultural Operations (SAO): PMFBY also covers farmers against prevented sowing and post-harvest losses.
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Minimal Exclusions: The scheme has minimal exclusions, providing coverage for localized risks as well.
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Quick Claims Settlement: PMFBY mandates the settlement of claims within two months of harvest, ensuring timely compensation to farmers.
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Use of Technology: The scheme utilizes technology for quicker assessment of crop losses through remote sensing techniques and smartphones.
Implementation and Challenges:
While PMFBY has made significant strides in boosting agricultural insurance coverage in India, it faces several implementation challenges. Some of the key challenges include:
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Delayed Premium Subsidy Disbursement: Timely disbursement of premium subsidies to insurance companies is crucial to ensure the success of the scheme.
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Limited Awareness: Many farmers, especially in remote areas, have limited awareness about PMFBY and its benefits.
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Claim Settlement Issues: There have been instances of delays and disputes in claim settlement, affecting farmer trust in the scheme.
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Data Management: Effective data management and accurate assessment of crop losses remain critical for the successful implementation of PMFBY.
Frequently Asked Questions (FAQs):
Q1. Who is eligible to enroll in PMFBY?
A1. All farmers, including sharecroppers and tenant farmers, are eligible to enroll in PMFBY.
Q2. What crops are covered under PMFBY?
A2. PMFBY covers all food crops, oilseeds, and horticultural/commercial crops.
Q3. How much premium do farmers have to pay under PMFBY?
A3. Farmers have to pay a nominal premium amount (2% for Kharif, 1.5% for Rabi, and 5% for horticulture crops), with the rest subsidized by the government.
Q4. How are crop losses assessed under PMFBY?
A4. Crop losses are assessed using remote sensing techniques, smartphones, and field assessments.
Q5. What is the timeline for claim settlement under PMFBY?
A5. Claims under PMFBY are mandated to be settled within two months of harvest.
In conclusion, Pradhan Mantri Fasal Bima Yojana plays a crucial role in providing financial security to farmers in India. By offering comprehensive coverage, subsidizing premiums, and leveraging technology for quick assessment, PMFBY aims to mitigate the financial risks associated with agriculture and boost farmer confidence. Despite facing implementation challenges, the scheme continues to evolve and make a positive impact on the agricultural sector.
