Pradhan Mantri Fasal Bima Yojana: An Overview
Agriculture is a vital sector of the Indian economy. It is the source of livelihood for more than 50% of the country’s population. However, it is also a risky sector due to the frequent occurrence of natural calamities like droughts, floods, cyclones, etc. The farmers often face huge losses due to crop damages caused by such calamities. To mitigate the losses and provide financial security to the farmers, the government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.
The PMFBY is a crop insurance scheme that aims to provide protection to the farmers against crop losses due to natural calamities, pests, or diseases. It is an improvement over the previous crop insurance schemes as it provides more comprehensive coverage at a lower premium.
Features of PMFBY:
1. The scheme covers all food crops, oilseeds, and horticultural crops.
2. The farmers need to pay a low premium (2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial crops) to participate in the scheme. The remaining premium is paid by the government.
3. The sum insured is based on the maximum yield of the crop in the past five years, and the compensation is paid to the farmers based on the shortfall in yield due to covered risks.
4. The scheme uses technology to reduce the time taken in claim settlement. It requires farmers to link their Aadhaar and bank accounts to get the compensation directly into their account.
5. The PMFBY also has provisions to encourage farmers to adopt better crop practices, crop diversification, and use of modern technologies.
Benefits of PMFBY:
The PMFBY has several benefits for the farmers:
1. Financial Security: The scheme provides financial security to the farmers by compensating for the losses caused by natural calamities.
2. Affordable Premium: The premium rates are low, making it affordable for small and marginal farmers to participate in the scheme.
3. Timely Settlement: The scheme uses technology to settle claims quickly, ensuring that the farmers receive the compensation on time.
4. Crop Diversification: The scheme encourages farmers to diversify their crops, which can reduce the risk of losses due to crop failure.
5. Adoption of Technology: The scheme promotes the use of modern technologies in agriculture, which can increase crop productivity and profitability.
Conclusion:
The Pradhan Mantri Fasal Bima Yojana is a crucial step towards protecting the interests of the farmers and providing them with financial security. It has several benefits for the farmers and encourages them to adopt better crop practices, which can improve the overall productivity of the agriculture sector. The scheme needs to be implemented efficiently to ensure that the farmers receive timely compensation in the event of crop losses.