PRADHAN MANTRI FASAL BIMA YOJANA (PMFBY)

PMFBY launched in 2016 is a large-scale crop subsidy insurance scheme that was aimed to safeguard farmers.

OBJECTIVE: Pradhan Mantri Fasal Bima Yojana (PMFBY) aims for supporting sustainable production in agriculture sector by way of

1. Providing compensation to farmers suffering crop loss/damage arising out of unforeseen events i.e expand penetration of crop insurance,

2. Stabilizing the income of farmers to ensure their continuance in farming,

3. Encouraging farmers to adopt innovative and modern agricultural practices,

4. Ensuring flow of credit to the agriculture sector;

which will attribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks. It operates under the motto of ‘One Nation, One Crop, One Premium’.

COVERAGE UNDER THE SCHEME:

SALIENT FEATURES:

• • Centrally sponsored scheme
  • Comprehensive crop insurance scheme from pre-sowing to post-harvest.
  • States can setup their own insurance companies.
  • Aadhaar is made mandatory.
  • It is open for both loanee and non-loanee farmers.
  • Concept of Area Approach: The Scheme shall operate on the principle of “Area Approach” in the selected Defined Areas called Insurance Unit (IU). State Government /UT will notify Crops and Defined Areas covered during the season. State/UT Government will notify as an insurance unit, Village/Village Panchayat or any other equivalent unit for major crops. For other crops it may be a unit of size above the level of Village / village Panchayat.
  • Premium paid by the Farmer: The Actuarial Premium Rate (APR) would be charged under PMFBY by implementing agency (IA). The rate of Insurance Charges payable by the farmer are as:

Central Subsidy:

• • 30% for unirrigated areas/crops
  • 25% for irrigated areas/crops (districts having 50% or more irrigated area will be considered as irrigated area/district)
  • 90% for North Eastern States

BENEFITS:

• • It provides comprehensive insurance coverage for Kharif and Rabi crops.
  • There is provision for add on coverage available in specific circumstances.
  • It provides freedom to farmers as optional for both loanee and non-loanee.
  • It ensures stability in the income of farmers so that they can continue farming.

CHALLENGES:

• • There are prevailing gender gaps in registration.
  • There is lack of awareness and poor reachability especially among the small and marginal farmers in rural areas.
  • During the survey it was found that the campaign was done at the block level on a market day. So, only those farmers who attended market were exposed to the campaign.
  • There is lack of manpower and hard pressed for extension related activities, so scope for Agriculture extension officers using their services is limited.
  • End users i.e. the farmers have very little understanding of the process. Small and marginal farmers are mostly illiterate and can’t read / understand the technicalities of the scheme.
  • Survey of the damaged crop / Claim settlement process is often biased to avoid the claim process.

ACHIEVEMENTS:

• • It is the largest crop insurance scheme in the history of independent India and globally, the third largest scheme in terms of premium.
  • According to the estimates of Budget 2024, crop insurance has been given to 40 million farmers, under PM Fasal Bima Yojna.
  • 19 crore farmer applications have insured their crops under the PMFBY since 2016.
  • According to Ministry of Agriculture and Farmers Welfare, enrolment under PMFBY has increased by 27% in financial year 2023-24 so far.
  • There has been a increase of 70% in non-loanee area in 2022-23 from 2021-2022.

WAY FORWARD:

Adequate publicity needs to be given in all the villages of the notified districts/ areas. All possible means of electronic and print media, farmer’s fair, exhibitions including SMS messages, short films, and documentaries shall be utilized to create and disseminate awareness, benefits and limitations of the Scheme among the cultivators and the agencies involved in implementing the Scheme.

Insurance Week/Fasal Bima Saptah’

A mass awareness campaign, observed by ministry twice every year. The main aim is to increase farmers’ enrollment and create massive awareness on crop insurance.

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