Pradhan Mantri Fasal Bima Yojana (PMFBY) marked its five-year anniversary since its inception in 2016. This government-backed scheme offers crop insurance at a low premium to farmers across India, adhering to the ‘One Nation, One Scheme’ philosophy. It was introduced as a successor to the earlier National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme, with the aim of providing more comprehensive insurance coverage for the agricultural sector. The PMFBY has seen consistent participation, with over 5.5 crore farmer applications processed each year, and it provides a safety net that spans from before the sowing of crops to after the harvest, including support for losses due to unforeseen events such as prevented sowing and mid-season adversities.
Objective and Coverage of PMFBY
The main objective of the Pradhan Mantri Fasal Bima Yojana is to mitigate the risks involved in agriculture by providing financial support to farmers suffering crop loss or damage arising from unforeseen events. The scheme aims to stabilize the income of farmers to ensure their continuance in farming, encourage them to adopt innovative practices, and ensure the flow of credit to the agriculture sector. PMFBY covers a wide range of crops and addresses various stages of the farming process. It includes comprehensive risk coverage from pre-sowing to post-harvest against non-preventable natural risks.
Implementation and Premium Rates
The implementation of PMFBY involves multiple stakeholders including central and state governments, insurance companies, and financial institutions. Farmers pay a very nominal premium, and the remaining premium is equally subsidized by the Centre and the respective State governments. For Kharif crops, the premium paid by farmers is only 2% of the sum insured, for Rabi crops it is 1.5%, and for commercial and horticultural crops, the rate is 5%. The difference between the actual premium and the rate of insurance premium payable by farmers is provided as a subsidy.
Technology Integration in PMFBY
To enhance the effectiveness and transparency of PMFBY, technology plays a pivotal role. Satellite imagery, remote sensing technology, drones, and other geospatial technology are utilized for accurate assessment and timely settlement of claims. These technologies help in reducing the time taken to settle claims and also minimize human errors. The use of technology ensures that assessments are objective and based on reliable data.
Farmer Outreach and Challenges
Since its launch, PMFBY has been actively reaching out to farmers to bring them under the umbrella of crop insurance. However, there are challenges such as lack of awareness among farmers, delays in claim settlements, and discrepancies in data management. To address these issues, the government and implementing agencies conduct awareness campaigns and capacity-building exercises for farmers to educate them about the benefits of the scheme.
Impact on the Agricultural Sector
The impact of PMFBY on the agricultural sector has been significant. It has provided a safety net to millions of farmers, ensuring their financial stability despite the uncertainties of weather and other risks. The scheme has also encouraged banks to extend credit to the agricultural sector, knowing that the loans are secured against potential risks. By stabilizing farmers’ incomes, PMFBY has contributed to the overall goal of doubling farmers’ incomes, a key objective set by the Indian government.
Future Prospects of PMFBY
Looking ahead, the Pradhan Mantri Fasal Bima Yojana is poised to evolve and expand. The government plans to refine the scheme further to make it more farmer-friendly and to incorporate technological advancements for better service delivery. The focus is also on speeding up the claim settlement process and expanding the coverage to include more crops and farmers. With ongoing improvements and increased participation, PMFBY aims to continue playing a crucial role in supporting India’s agrarian economy.