Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship scheme of the Government of India that aims to provide financial support to the farmers in the event of crop failure or damage due to natural calamities. The scheme was launched in 2016 and since then it has been providing insurance cover to farmers against various disasters.
In 2020, the government has made some changes to the scheme to improve its coverage and reach. One of the major changes is the reduction of the premium rates for Kharif crops from 2% to 1.5% and for Rabi crops from 1.5% to 1%. This will provide relief to the farmers who are facing financial distress due to the Covid-19 pandemic.
Another significant change is the provision for the use of technology to assess crop damage. Under this, remote sensing technology and drones will be used to survey the crop damage and assess the compensation amount. This will eliminate the need for physical assessment and reduce the time taken to process claims.
Further, the scheme has been made voluntary for farmers who avail crop loans from banks. However, the government has made it mandatory for the states to implement the scheme if they want to receive additional financial assistance from the Centre.
The PMFBY has also been extended to non-loanee farmers who are cultivating crops on their own or leased land. This will ensure that even small and marginal farmers who do not have access to formal credit can avail the insurance cover.
Overall, the changes made to PMFBY in 2020 are a step towards improving the scheme’s effectiveness and reach. The reduction in premium rates, use of technology for crop damage assessment and extending the coverage to non-loanee farmers will benefit the farmers and provide them with the much-needed financial support in case of crop failure or damage.