Title: Pradhan Mantri Fasal Bima Yojana: Safeguarding Farmers, Uplifting Agriculture
Introduction:
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship agricultural insurance scheme launched by the Government of India in 2016. It aims to provide financial support and risk mitigation to farmers in the event of crop failure due to natural calamities, pests, or diseases. With a mission to ensure the welfare of Indian farmers and promote agricultural stability, PMFBY has become an essential tool in protecting the livelihoods of millions across the country.
Objectives and Features of PMFBY:
The primary objective of PMFBY is to provide affordable and comprehensive insurance coverage to farmers, shielding them from financial distress caused by crop losses. Here are the key features of this ambitious scheme:
1. Universal Coverage: PMFBY covers all farmers, both loanee and non-loanee, across the nation. It excludes sharecroppers, tenant farmers, and other agricultural laborers.
2. Risk Coverage: The scheme protects against natural calamities including droughts, floods, cyclones, hailstorms, landslides, and pests or diseases. It also includes post-harvest losses within a set period.
3. Crop Eligibility: PMFBY covers major crops such as cereals, millets, pulses, oilseeds, horticultural crops, and commercial crops notified by the respective state governments.
4. Premium Subsidy: The premium rates under PMFBY are very low, with the burden being shared equally by the farmer and the government. For the premium rates, the farmers contribute 2% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for commercial or horticultural crops. The remaining amount is borne by the central and state governments.
5. Sum Insured Coverage: The sum insured is determined based on the scale of finance, which reflects the cost of cultivation per hectare. In case of post-harvest losses, the sum insured is calculated based on the actual value of the loss.
6. Claim Settlement: Faster and hassle-free claim settlements are facilitated through the use of technology. Satellite imagery, smartphones, drones, and remote sensing are employed to assess and verify crop loss, ensuring transparency and accountability.
Benefits and Impact:
The implementation of PMFBY has had a significant impact on Indian agriculture and the lives of farmers:
1. Financial Security: PMFBY provides financial security to farmers by compensating them for the losses incurred due to crop failure. This helps farmers overcome financial distress and indebtedness.
2. Increased Agricultural Investment: By minimising the risks associated with crop failure, PMFBY encourages farmers to make increased investments in modern agricultural practices and technologies, ultimately improving productivity.
3. Enhanced Crop Resilience: Farmers gain access to crucial agricultural information, best practices, and post-disaster support, enabling them to build resilience and increase their ability to withstand climate-related risks.
4. Credit Availability: PMFBY coverage ensures farmers are eligible for institutional credit, as insurance cover is a prerequisite for obtaining loans. This helps farmers access capital, invest in improved farming techniques, and break the cycle of borrowing from informal sources at high interest rates.
5. Socio-economic Upliftment: By providing income stability and reducing agrarian distress, PMFBY contributes to social and economic upliftment in rural areas, contributing to the overall development of the agricultural sector.
Conclusion:
The Pradhan Mantri Fasal Bima Yojana is an instrumental initiative towards safeguarding farmers, promoting agricultural stability, and nurturing rural livelihoods. By insuring crops against natural calamities and ensuring fast claim settlements, PMFBY empowers farmers to face challenges and build a stable and sustainable agriculture sector. With its wide coverage, affordable premiums, and transparent practices, PMFBY has emerged as a critical tool in protecting the interests and welfare of Indian farmers.