Prime Minister Crop Insurance Scheme
Pradhan Mantri Fasal Bima Yojana (PMFBY), commonly known as the Prime Minister Crop Insurance Scheme, is a crop insurance scheme in India. It was launched on 18th February 2016 and is administered by the Ministry of Agriculture and Farmers Welfare, Government of India. PMFBY aims to provide insurance coverage and financial support to farmers in the event of crop failure due to natural calamities, pests, or diseases.
Key Features of Pradhan Mantri Fasal Bima Yojana (PMFBY):
1. Comprehensive Coverage: PMFBY provides comprehensive coverage against yield loss due to various natural calamities such as drought, flood, cyclone, unseasonal rainfall, and pests and diseases.
2. Premium Subsidy: Farmers pay a nominal premium, and the rest of the premium is equally subsidized by the central and state governments. In the case of the northeastern states, the central government provides 90% of the premium, and farmers pay only 10%.
3. Risk Coverage: The scheme covers all food crops (cereals, millets, and pulses) and oilseeds. Commercial and horticultural crops can also be covered under the scheme.
4. Sum Insured: The sum insured is the amount that the farmer will receive in case of crop loss. It is calculated based on the scale of finance, which is the cost of cultivation per hectare.
5. Simplified Application Process: The application process has been simplified and made accessible through online and offline modes, ensuring ease of participation for farmers.
6. Timely Payouts: In case of crop loss, the insurance companies are required to settle the claims within a specified timeframe to ensure that farmers receive timely compensation.
7. Localized Risks: PMFBY allows the government to use technology and data to assess localized risks and provide customized solutions to farmers.
8. Flexibility for Farmers: Farmers have the option to choose the insurance company based on their preferences, ensuring competition among insurers.
9. Post-Harvest Loss Coverage: Coverage for post-harvest losses due to cyclones and unseasonal rainfall is also provided under the scheme.
PMFBY plays a crucial role in mitigating the financial risks faced by farmers due to crop loss, thereby promoting agricultural sustainability and providing economic security to farming communities across India. Farmers are encouraged to participate in this scheme to safeguard their livelihoods from the uncertainties associated with agricultural production.