Pradhan Mantri Fasal Bima Yojana (PMFBY) is an agricultural insurance scheme that was launched by the Government of India in 2016. It is meant to provide farmers with financial protection against risks such as floods, drought, hailstorms, pests, and diseases.
The PMFBY aims to ensure that farmers do not suffer financial losses due to crop damage. Under this scheme, the premium that farmers have to pay is very low, only 1.5% to 2% of the sum insured. The government bears the rest of the premium amount to make agricultural insurance affordable for the farmers.
The insurance scheme covers all food crops, oilseeds, and horticultural crops. The insurance covers the sowing, the standing crop, and the post-harvest stage. The scheme is voluntary, and the farmers can choose to enroll or not.
The PMFBY is an improvement over the earlier crop insurance schemes in India, which had many issues. The major issues were the low sum insured amount, the high premium rates, and the delay in claim settlement. The PMFBY has addressed these issues, and it is now the most comprehensive crop insurance scheme in India.
The PMFBY is implemented through the Agriculture Insurance Company of India (AIC). The government has made it mandatory for all insurance companies to participate in the scheme, and it is now available in almost all parts of the country.
The scheme has been successful in its implementation. It has benefitted many farmers across the country and has helped them recover from crop losses. The scheme has been especially helpful in areas prone to natural calamities.
In conclusion, the Pradhan Mantri Fasal Bima Yojana is a much-needed scheme for farmers in India. It has made agricultural insurance affordable and accessible to farmers across the country. As the farming sector is the backbone of the country’s economy, this scheme is crucial in ensuring the financial security of farmers and the growth of the economy.