The Pradhan Mantri Fasal Bima Yojana (PMFBY) was established by the Government of India to serve as the primary crop insurance initiative. Instituted in 2016 by the Ministry of Agriculture and Farmers Welfare, PMFBY replaced the National Agriculture Insurance Policy (NAIS). The primary aim of PMFBY is to extend comprehensive crop insurance coverage to all farmers in the country, including those engaged in subsistence farming.
Objectives of Pradhan Mantri Fasal Bima Yojana: PMFBY is designed to achieve multiple objectives, with a primary focus on providing financial protection to farmers:
- Risk Mitigation: The scheme aims to safeguard farmers from financial losses resulting from crop damage due to pests, diseases, or natural calamities.
- Financial Security: PMFBY ensures that farmers receive adequate compensation in the event of crop loss, preventing them from falling into a debt trap.
- Encouraging Investment: The scheme promotes investment in modern agricultural practices and technology by offering a safety net to farmers.
- Credit Flow: PMFBY facilitates the flow of credit to the agriculture sector.
Salient Features of Pradhan Mantri Fasal Bima Yojana: Under PMFBY, farmers can insure their crops against losses caused by natural calamities such as drought, flood, landslide, hailstorm, etc. The scheme provides coverage from pre-sowing to post-harvest losses, including yield losses, losses due to prevented sowing, localised calamities, and post-harvest losses. PMFBY utilizes technology, including remote sensing techniques, GPS, and drones, to ensure transparency and efficiency in the crop insurance process.
Premium Subsidy under Pradhan Mantri Fasal Bima Yojana: PMFBY provides premium subsidies to make crop insurance affordable for farmers. The premium rates vary:
- 2% premium for Kharif crops, based on the sum assured or actuarial rate, whichever is lower.
- 1.5% premium for Rabi crops, based on the actuarial rate or sum assured, whichever is lower.
- 5% premium for horticultural and commercial crops.
The government subsidy has no upper limit, ensuring that farmers receive the full insured amount even if the balance premium amounts to 90%.
Eligibility and Coverage of Crops Under PMFBY: All farmers with insurable interest in crops grown in notified areas are eligible. The scheme covers oilseeds, food crops like pulses, millet, and cereals, and annual horticulture/commercial crops.
Risk Coverage under Pradhan Mantri Fasal Bima Yojana: PMFBY operates on the “area approach” principle, providing coverage to all farmers within a notified area based on comprehensive risk assessment. It includes yield-based coverage, prevented sowing coverage, coverage for post-harvest losses, and coverage for losses due to the attack by wild animals.
Exclusions Under the Pradhan Mantri Fasal Bima Yojana: Certain exclusions exist, such as losses resulting from willful negligence, factors outside specified perils, war or nuclear risks, market fluctuations, and improper storage facilities leading to post-harvest losses.
How to Apply for Pradhan Mantri Fasal Bima Yojana: In case of crop damage, farmers need to notify the bank, insurance company, or agriculture department within 72 hours. The application process involves visiting the official PMFBY website, filling the insurance form in the Farmer Corner, and submitting the details.
In essence, the Pradhan Mantri Fasal Bima Yojana stands as a transformative initiative for Indian agriculture, offering comprehensive crop insurance coverage and featuring notable aspects like premium subsidies, technological integration, prompt claim settlements, and a unified premium rate, rendering it accessible and economical for farmers nationwide. If you want to know more about this blog and used tractor, TractorKarvan simplifies the process, helping you discover the best agricultural tractors across various brands. Waste no time; explore our website today for a seamless buying experience.
