As an agricultural economy, India heavily depends on the farming sector for its growth and development. However, the livelihood of farmers often gets affected due to natural calamities, crop failure or market fluctuations. To ensure the well-being of farmers, the Indian government launched the Pradhan Mantri Fasal Bima Yojana (PMFBY), an insurance scheme for crops, in 2016.
The primary objective of PMFBY is to provide financial support to farmers who are affected by crop loss due to natural calamities such as droughts, floods, or any other natural disasters. Under this scheme, the government offers a comprehensive crop insurance cover to farmers at a subsidized premium rate.
To understand the scheme better, it is essential to know its key features. Firstly, the scheme covers crops in the pre-sowing and post-harvest risks, including localized risks such as landslide, hailstorm, and inundation. Secondly, the scheme provides insurance coverage to all farmers, whether they are small, marginal, or large ones. Thirdly, the government aims to expand the spread of insurance coverage by incentivizing states to increase the coverage of farmers and the crops under the scheme. Lastly, for a premium that is as low as 1.5% of the sum assured, farmers can get insurance coverage up to 2 hectares on their crops.
If you are a farmer who wants to avail the benefits of PMFBY, here are some steps you should follow. Firstly, register your name with the bank, primary agriculture society, or any other institution with which you have loans. Secondly, provide necessary details regarding the sown crops at the office of the Agricultural Insurance Company of India Limited (AIC). Thirdly, submit the requisite documents like land details, proof of crops sown, and bank details. After the verification process is complete, you will receive a policy document.
In conclusion, PMFBY is a welcome move by the government to improve the living conditions of farmers who are the backbone of the nation’s economy. This scheme helps to mitigate the financial risks associated with farming and provides financial protection against crop failure due to unforeseeable circumstances. By offering an affordable crop insurance scheme, the government aims to improve the lives of farmers by safeguarding their livelihoods and ensuring their economic well-being.