Pradhan Mantri Fasal Yojana (PMFY) is a flagship crop insurance scheme launched by the Government of India in 2016 to provide financial assistance to farmers in case of crop failure or damage due to natural disasters or adverse weather conditions. The scheme aims to provide affordable financial support and risk management tools to farmers across the country.
Under PMFY, the premium rates for crop insurance are subsidized by the government, making it affordable for small and marginal farmers who may otherwise not be able to avail of crop insurance. The scheme provides coverage for both crop loaned and non-loaned farmers. The scheme covers all crops grown by farmers in the notified areas, including food crops, oilseeds, and horticultural crops.
The scheme is voluntary, and farmers who wish to avail of it must apply for it through the Common Service Centers (CSCs) or designated insurance companies. The premium rates are determined based on the risk profile of the crop, which is assessed by the insurance companies based on inputs such as the location of the farm, the type of crop, and the history of crop damage due to natural disasters. The premium rates are subsidized by the government to ensure that farmers can afford to pay the premiums.
The scheme provides a range of benefits to farmers, including coverage for pre-sowing losses, post-harvest losses, and yield losses due to natural disasters or adverse weather conditions. In case of crop damage, the insurance companies are required to settle claims within 15 days of the receipt of the claim.
PMFY has been successful in providing financial support and risk management tools to farmers across the country. As of 2020, over 6 crore farmers have been enrolled in the scheme, and over Rs. 90,000 crore has been disbursed to farmers as insurance claims. The scheme has also been expanded to cover new crops and areas, making it more comprehensive and accessible to farmers.
In conclusion, Pradhan Mantri Fasal Yojana is an important scheme that provides affordable crop insurance to farmers across the country. The scheme has been successful in providing financial support and risk management tools to farmers in case of crop failure or damage due to natural disasters or adverse weather conditions. The scheme has the potential to transform the agriculture sector in India by providing financial security to farmers and encouraging them to invest in new crops and technologies. So, the government is committed to the scheme’s success and plans to continue expanding its reach in the coming years.