Pradhan Mantri Fasal Bima Yojana Celebrates Nine Years

The Pradhan Mantri Fasal Bima Yojana (PMFBY) marked its nine-year anniversary on February 18, 2025. Launched in 2016, this scheme aims to protect Indian farmers against crop losses due to natural disasters. It has evolved , incorporating advanced technologies and expanding its reach. The Union Cabinet approved its continuation until 2025-26, with a substantial budget allocation.

Overview of PMFBY

PMFBY provides financial support to farmers facing crop damage from various natural calamities. The scheme covers losses due to droughts, floods, pests, and diseases. It aims to stabilise farmer incomes and promote innovative agricultural practices.

Technological Integration

The scheme employs advanced technologies such as satellite imagery, drones, and remote sensing. These tools enhance crop area estimation and yield assessments. They also facilitate timely payment of claims. The introduction of the Crop Cutting Experiments (CCE) App allows for direct data upload to the National Crop Insurance Portal.

Restructured Weather Based Crop Insurance Scheme

Alongside PMFBY, the Restructured Weather Based Crop Insurance Scheme (RWBCIS) was launched. This scheme uses weather indices to calculate claims, differing from PMFBY’s traditional methods. Both schemes aim to provide comprehensive coverage for farmers.

Key Benefits of PMFBY

Farmers benefit from affordable premiums. The maximum premium is 2% for Kharif crops and 1.5% for Rabi crops. The government subsidises the remaining premium. The scheme ensures timely compensation, processing claims within two months of harvest.

Types of Risks Covered

PMFBY covers various risks, including yield losses from natural disasters and localised calamities. It also addresses prevented sowing due to adverse weather conditions. Post-harvest losses are covered for up to 14 days after harvesting.

Strengthening the Scheme

The government has implemented measures to enhance transparency and accountability. As a result, the number of farmers enrolled in the scheme has reached an all-time high. Some states have waived farmers’ premiums, reducing their financial burden.

Eligibility and Application Process

PMFBY is voluntary for farmers. However, participation among non-loanee farmers has increased , indicating growing trust in the scheme. The application process is streamlined to facilitate easy access for farmers.

Future Prospects

As PMFBY enters its next phase, it continues to empower farmers and boost agricultural resilience in India. Its focus on technological integration and comprehensive coverage positions it as a vital support system for the farming community.

Questions for UPSC:

1. Discuss the significance of crop insurance schemes in enhancing agricultural sustainability in India.
2. Critically examine the role of technology in improving crop yield estimation and insurance claim assessments.
3. What are the challenges faced by smallholder farmers in accessing crop insurance? Suggest measures to address these challenges.
4. Explain the concept of weather-based crop insurance. How does it differ from traditional crop insurance models?

Answer Hints:

1. Discuss the significance of crop insurance schemes in enhancing agricultural sustainability in India.

1. Provides financial stability to farmers, reducing the impact of crop losses due to natural disasters.
2. Encourages farmers to adopt sustainable practices, knowing they have a safety net.
3. Enhances food security by stabilizing farmer incomes, leading to consistent food production.
4. Promotes investment in agricultural innovations and technologies due to reduced risks.
5. Contributes to rural economic development by ensuring farmers can recover from losses and continue farming.

2. Critically examine the role of technology in improving crop yield estimation and insurance claim assessments.

1. Utilizes satellite imagery and drones for accurate crop area estimation and monitoring.
2. Enhances transparency and accountability in loss assessment through remote sensing technologies.
3. Facilitates timely claim settlements by integrating technology in data collection (e.g., CCE-Agri App).
4. Reduces reliance on manual assessments, improving efficiency and accuracy in yield estimation.
5. Encourages the adoption of advanced agricultural practices through real-time data analysis.

3. What are the challenges faced by smallholder farmers in accessing crop insurance? Suggest measures to address these challenges.

1. Limited awareness of insurance schemes and their benefits among smallholder farmers.
2. High premium costs relative to their income, making it unaffordable for some.
3. Complex application processes that deter participation from less literate farmers.
4. Difficulty in providing accurate data for yield estimation due to lack of technology access.
5. Measures – Increase awareness campaigns, subsidize premiums further, simplify application processes, and enhance technology access.

4. Explain the concept of weather-based crop insurance. How does it differ from traditional crop insurance models?

1. Weather-based crop insurance uses weather indices (e.g., rainfall, temperature) to determine payouts.
2. It provides coverage based on weather conditions rather than actual crop yield loss assessments.
3. Offers quicker claim settlements as it relies on objective weather data rather than subjective evaluations.
4. Traditional models focus on individual crop losses and require extensive field assessments.
5. Weather-based insurance can cover a broader range of risks and is easier to administer.