Agriculture is one of the main sources of livelihood in Madhya Pradesh, with over 70% of the population involved in farming activities. However, farmers in the state are exposed to numerous risks such as natural calamities, market fluctuations, and crop failures due to pests and diseases. It is here that agriculture insurance comes to their rescue.
Agriculture insurance is a risk management tool that provides financial protection to farmers against crop losses stemming from natural calamities such as floods, droughts, cyclones, earthquakes, and other weather-related incidents. Agriculture insurance policies in Madhya Pradesh also cover crop losses from pests and diseases, as well as market price variations.
Madhya Pradesh has implemented several agriculture insurance schemes to support farmers and protect their interests. One such scheme is the Pradhan Mantri Fasal Bima Yojana (PMFBY), which was launched in 2016. Under PMFBY, farmers pay a subsidized premium of between 1.5% to 2% on the sum insured, depending on the crop. The rest is borne by the government and insurance companies.
Another scheme is the Mukhya Mantri Kisan Kalyan Yojana (MMKKY), which provides crop insurance coverage on a voluntary basis to small and marginal farmers. In case of crop loss, the government provides financial assistance up to a maximum of Rs 10,000 per hectare. The compensation amount is credited directly to the farmers’ bank accounts.
Apart from these schemes, Madhya Pradesh also offers individual crop insurance policies for crops like soybean, wheat, grams, and mustard. Farmers can avail of these policies at affordable premiums and protect themselves from crop losses.
Agriculture insurance has become a crucial tool for farmers in Madhya Pradesh to mitigate risks and cope with uncertainties. It has helped farmers sustain their livelihoods, enhance their productivity, and promote greater agricultural growth in the region. With ongoing efforts from the government and insurance companies, the agriculture insurance sector in Madhya Pradesh is expected to evolve further and offer more comprehensive coverage to farmers in the years to come.