Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme launched by the Government of India in 2016 with the aim of providing financial support to farmers in case of crop failure or damage due to natural calamities. The scheme covers all food crops, oilseeds, and annual commercial/horticultural crops. PMFBY replaces the existing two crop insurance schemes – National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
The main objective of PMFBY is to provide a comprehensive insurance coverage to farmers at an affordable premium rate. Under this scheme, farmers pay a fixed premium of 2% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops. The rest of the premium is shared equally by the central and state governments.
One of the key features of PMFBY is that it provides coverage for pre-sowing and post-harvest losses, in addition to losses due to natural calamities like drought, flood, hailstorm, cyclones, pests, and diseases. The claims under this scheme are settled within two months of the crop cutting experiment.
PMFBY has been implemented across the country and has benefitted millions of farmers by providing them with financial security in times of crop failure. The scheme has also been successful in promoting a culture of risk management among farmers and encouraging them to adopt modern agricultural practices.
In conclusion, Pradhan Mantri Fasal Bima Yojana is a crucial initiative by the Government of India to safeguard the interests of farmers and ensure their financial stability. By providing crop insurance at an affordable premium rate, the scheme has helped in mitigating the risks faced by farmers and improving their livelihoods.