The scheme benefits farmers who face crop losses due to various reasons
The Government of India took a historic step 5 years ago, on 13th January 2016, towards strengthening risk coverage of crops for farmers of India and approved the flagship crop insurance scheme – the Pradhan Mantri Fasal Bima Yojana (PMFBY). The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers. The Government of India is committed to protecting the interests of the farmers.
Premium cost over and above the farmer share is equally subsidized by States and GoI. However, GoI shares 90% of the premium subsidy for the North Eastern States to promote the uptake in the region.
The average sum insured per hectare has increased from Rs 15,100 during the pre-PMFBY Schemes to Rs 40,700 under PMFBY.
As an end to end risk mitigation mechanism for farmers, the scheme extends coverage for the entire cropping cycle from pre-sowing to post-harvest including coverage for losses arising out of prevented sowing and mid-season adversities. Individual farm-level losses arising out of localized calamities and post-harvest losses are also covered due to perils such as inundation, cloudburst, and natural fire.
The scheme makes it easier for the farmer to report crop loss within 72 hours of the occurrence of any event through the Crop Insurance App, CSC Centre or the nearest agriculture officer. The Scheme covers over 5.5 crore farmer applications year on year. To date, claims worth Rs 90,000 crores have already been paid out under the Scheme.
