As agriculture is the primary source of livelihood for a majority of rural households in India, crop failures due to natural calamities or other reasons can lead to financial distress. To address this, the government of India launched the Pradhan Mantri Fasal Beema Yojana (PMFBY) in 2016, a crop insurance scheme aimed at providing financial protection to farmers against crop losses.
Under PMFBY, farmers have to pay a minimal premium, which is based on the type of crops and their location. The central and state governments, along with the insurance companies, provide the rest of the premium amount. In case of crop loss due to any reason, be it natural disasters like floods, droughts, or pest infestation, the farmer is entitled to receive compensation equal to the insured amount.
PMFBY is a very comprehensive scheme, covering almost all food crops, horticultural crops, and oilseeds. It is also open to all farmers, whether they are small, marginal or large. Additionally, the scope of the scheme has been extended to cover post-harvest losses due to weather conditions, fire, and transport-related issues.
One of the major benefits of this scheme is that it helps in stabilizing farmers’ incomes and reducing their dependence on money lenders in the event of crop damage. The scheme also encourages farmers to adopt modern farming practices and technologies, as better agricultural practices lead to healthier crops, lower risks and increased compensation under the scheme.
PMFBY has been successful in protecting farmers against crop losses, and its coverage has been increasing year after year. However, there have been some complaints and criticisms of the scheme, such as delayed payouts and complications in the claim settlement process. The government has taken steps to simplify and streamline the claim procedures, and proper awareness campaigns are being conducted to increase the outreach of the scheme to reach more farmers.
In conclusion, PMFBY is a crucial scheme that provides financial protection to farmers against crop losses. It is necessary to continuously review and improve the scheme to ensure its proper implementation, better outreach, and timely settlements of the farmers’ claims.