Pradhan Mantri Fasal Bima Yojna, also known as PMFBY, is an insurance scheme launched by the Government of India aimed at providing financial protection to farmers who suffer losses due to crop damage or failure. The scheme was launched in 2016 to replace the earlier crop insurance schemes, National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
Under PMFBY, farmers pay a nominal premium, which is lower than the earlier schemes, and the remaining amount is paid by the government. The scheme provides coverage against various perils such as drought, flood, fire, pests, diseases, and other natural calamities.
The coverage under PMFBY is available to all the farmers, including sharecroppers and tenant farmers. The scheme covers crops grown during the Kharif and Rabi seasons and commercial crops such as cotton and sugar cane. Under the scheme, the sum insured is based on the cost of cultivation and potential yield of the crop. The scheme also provides post-harvest coverage for losses incurred due to adverse weather conditions during the harvesting and transportation of crops.
The claims under PMFBY are settled based on the area affected by the crop damage rather than individual farmer losses. The claims process is simplified under the scheme, and compensation is directly credited to the account of the farmers within a month of the claim being made.
PMFBY has several benefits for farmers, such as reducing their financial risks, providing them with access to formal credit, and increasing their investment in agriculture. The scheme also helps in stabilizing farm incomes, reducing distress selling, and contributing to food security.
To ensure the effective implementation of the PMFBY scheme, the government has set up several measures such as an online portal for registration and claim settlement, crop cutting experiments, and use of remote sensing, drones, and satellite imagery for assessment of crop losses.
In conclusion, PMFBY is a commendable initiative by the government aimed at providing financial protection to farmers and reducing their financial risks. However, several challenges such as low awareness, bureaucratic hurdles, and poor implementation need to be addressed for the scheme to be successful in achieving its objectives.