The Pradhan Mantri Fasal Bima Yojana is a government-sponsored crop insurance scheme. It supports agricultural production by offering comprehensive risk cover for crops. The PMFBY was launched in India by the Ministry of Agriculture & Farmer’s Welfare, New Delhi, from Kharif 2016 onward. This flagship scheme is in line with the One Nation – One Scheme programme. It is the largest agricultural insurance in the world, covering more than 50 crore of farmers and over 50 different crops. All farmers who have been sanctioned a Seasonal Agricultural Operations loan (crop loan) are compulsorily covered by the scheme. Read on to learn more.
Objectives of the Pradhan Mantri Fasal Bima Yojana
The PMFBY is implemented by a network of insurance companies and banks across India. The scheme encourages sustainable production in agriculture by:
Helping farmers adopt innovative and advanced farming practices.
Providing a safety net to farmers suffering crop loss and damage.
Reducing the burden of paying high premiums since the amount is subsidised. For instance, farmers have to pay 2% of the sum insured for Kharif, 1.5% of the sum insured for Rabi and 5% of the sum insured for Kharif and Rabi crops.
Besides benefiting farmers, the scheme also ensures credit flow to the agricultural sector. This further leads to crop diversification and food security, thus increasing the development and competitiveness of the farming sector.
Inclusions of the Pradhan Mantri Fasal Bima Yojana
The scheme is divided into 2 types of coverages. Here’s a look.
Farmer Coverage
Sharecroppers and tenant farmers growing notified crops in notified areas are eligible.
The scheme offers maximum coverage for SC/ST/women farmers.
A change in crop plan is accommodated and must be brought to the notice of the insurer within a week of sowing.
The scheme is mandatory for loanee farmers and optional for non-loanee farmers.\
Crop Coverage
Food crops (cereals, millets, and pulses), oilseeds, and annual commercial/annual horticulture crops are covered.
Non-preventable incidents like dry spells, widespread pest attacks, floods, fire, storms, cyclones and landslides that can cause the loss of crops are covered. Standing crops (sowing to harvesting) will be insured under the scheme.
Post-harvest loss coverage is provided for a maximum of two weeks from harvesting for crops that were to be cut, spread, or bundled but were destroyed due to unseasonal rains and hailstorms.
Add-on covers are available for crop loss due to attacks by wild animals. This is available for an additional premium, and the state government might provide an additional subsidy. However, the risk must be substantial and identifiable in and around the specific farming land. In addition, if farmers are unable to pay the premium, the government offers a 100% subsidy.
Farmers must have a valid and authenticated land ownership certificate, Kisan Credit Card (KCC), and a bank account with identity proof during enrolment to get insurance. It is the farmer’s responsibility to inform the insurance provider as soon as possible regarding crop damage. Further, they must ensure that the insured crop is the same as the ones sown.
