Pradhan Mantri Fasal Beema Yojana (PMFBY) is a crop insurance scheme launched by the Government of India in 2016. The main objective of the scheme is to provide financial support to farmers in case of damage or loss of crops due to natural calamities, pests, or diseases. The scheme is voluntary for farmers and covers both loanee and non-loanee farmers.
Under PMFBY, farmers have to pay a nominal premium amount based on the sum insured. The government provides subsidies to the premium, for small and marginal farmers, the premium is lowered to 1.5% of the sum insured for Kharif crops and 2% for Rabi crops. For other farmers, the premium is 2% for Kharif crops and 1.5% for Rabi crops.
The scheme covers all food and oilseed crops, commercial crops, and horticultural crops. It provides coverage for the entire crop cycle, including pre-sowing to post-harvest losses due to natural calamities, pests, or diseases. Loss or damage caused due to unpreventable risks like cyclones and droughts are covered in the scheme.
The claim settlement process under the scheme is hassle-free and quick. The claim amount is directly transferred to the farmer’s bank account on the basis of damage assessment, and the crop cutting experiment conducted by the department. The farmers are also given the flexibility to choose the insurance company of their choice under the scheme. In case of a discrepancy, the farmer can seek the help of a designated appraiser appointed by the insurance company.
PMFBY has been a timely initiative by the government, as it has helped farmers to secure their livelihood by providing financial assistance during crop losses. The scheme has helped the farmers to overcome the cycle of crop losses, make farming financially viable and compelling. The scheme is an essential step towards achieving a sustainable agricultural economy in India.