Pradhan Mantri Fasal Beema Yojana (PMFBY) is a crop insurance scheme that was launched by the Government of India in 2016. The main objective of the scheme is to provide financial support to farmers in case of crop failure due to natural calamities or adverse weather conditions.
Under the scheme, farmers have to pay a nominal premium, which is calculated as a percentage of the sum insured. The premium is subsidized by the government to encourage maximum participation by farmers. In case of crop failure, the insured farmer will receive compensation equivalent to the sum insured for the crop.
PMFBY covers all food and oilseed crops, as well as commercial and horticultural crops. The scheme also covers losses due to localized calamities such as hailstorms, landslides, and floods, in addition to natural calamities such as drought, floods, and cyclones.
The scheme also offers a number of additional benefits to farmers. One such benefit is that farmers can avail of loans at reduced interest rates if they have taken crop insurance under PMFBY. In addition, banks are required to prioritize loan applications from farmers who have taken crop insurance.
Another benefit of PMFBY is that it promotes the use of modern technology in agriculture. Farmers who use modern techniques such as precision farming, micro-irrigation, and crop diversification are eligible for a higher sum insured and a lower premium.
PMFBY has been widely welcomed by farmers across India. It has helped farmers to manage their risks effectively, and has provided financial support in times of crisis. The scheme has also encouraged farmers to adopt modern technology and best practices in agriculture, which has contributed to improved productivity and higher yields.
In conclusion, PMFBY is a well-designed scheme that has been successful in providing financial protection to farmers against crop losses. It has helped to promote modern agricultural practices and has contributed to the welfare of farmers in India.