Context:
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented successfully across the country since 2016. The Government has made several interventions for ensuring better transparency, accountability, timely payment of claims to the farmers and to make the scheme more farmer friendly, as a result of which the area and farmers covered under the scheme in 2023-24 is at all-time high. The scheme is now the largest in the world in terms of farmer applications insured.
Relevance:
GS II: Government Policies and Interventions
About Pradhan Mantri Fasal Bima Yojana (PMFBY)
- The Pradhan Mantri Fasal Bima Yojana (PMFBY) launched on 2016 by Prime Minister Narendra Modi is an insurance service for farmers for their yields.
- PMFBY is in line with One Nation – One Scheme theme.
- The PMFBY will replace the existing two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.
- 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), Government of India (GOI) and the concerned State in co-ordination with various other agencies.
- Premium cost over and above the farmer share is equally subsidized by States and the Central Government of India. However, the Central Government shares 90% of the premium subsidy for North Eastern States to promote the uptake in the region.
Objectives
- To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop 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.
Beneficiaries: All farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.
Coverage of Crops:
- Oil seeds
- Food crop
- Annual Commercial / Annual Horticultural crops.
- In addition, for perennial crops, pilots for coverage can be taken for those perennial horticultural crops for which standard methodology for yield estimation is available.
Risks covered under the scheme
- Prevented Sowing/Planting/Germination Risk: Insured area is prevented from sowing/planting/germination due to deficit rainfall or adverse seasonal/weather conditions.
- Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spell, Flood, Inundation, widespread Pests and Disease attack, Landslides, Fire due to natural causes, Lightening, Storm, Hailstorm and Cyclone.
- Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition in the field after harvesting against specific perils of Hailstorm, Cyclone, Cyclonic rains and Unseasonal rains
- Localized Calamities: Loss/damage to notified insured crops resulting from occurrence of identified localized risks of Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightening affecting isolated farms in the notified area.
- Add-on coverage for crop loss due to attack by wild animals: The States may consider providing add-on coverage for crop loss due to attack by wild animals wherever the risk is perceived to be substantial and is identifiable.
- General Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
