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Pradhan Mantri Fasal Bima Yojana (PMFBY) | AgriInsights

Understanding the Pradhan Mantri Fasal Bima Yojana (PMFBY)

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In a country where agriculture is the backbone of the economy and provides lives for millions, protecting farmers against crop loss due to unexpected circumstances is critical. Recognising this need, In 2016 the Central Government introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) aimed at providing farmers with comprehensive crop insurance coverage and financial assistance during times of difficulty. Let us go deeper into this groundbreaking design and identify its major components.

Objective of Pradhan Mantri Fasal Bima Yojana (PMFBY)

The major goal of PMFBY is to reduce farmers' financial risks associated with crop loss caused by natural disasters such as droughts, floods, diseases, pests, or other unexpected occurrences. PMFBY aims to give farmers a safety net by offering reasonable crop insurance, assuring them financial security, and shielding them from the vagaries of nature. Furthermore, the initiative seeks to encourage farmers to adopt new agricultural methods, technology, and crop diversification by protecting them from any losses.

Who can be covered under PMFBY?

PMFBY extends its coverage to all farmers, including tenant farmers, sharecroppers, and oral lessees, irrespective of their landholding size. The scheme applies to farmers growing notified crops in notified areas. Furthermore, the coverage is voluntary for non-loanee farmers and compulsory for farmers availing of institutional credit for crop cultivation. This inclusivity ensures that the benefits of crop insurance reach the grassroots level, empowering farmers across the nation.

Crops Covered under the Pradhan Mantri Fasal Bima Yojana (PMFBY)

PMFBY provides coverage for a wide range of crops, including cereals, pulses, millets, oilseeds, horticultural crops, and commercial crops. The scheme covers both kharif and rabi seasons, ensuring comprehensive protection throughout the agricultural calendar.

Rate of premium to be paid by farmers under PMFBY

The premium rates under PMFBY are heavily subsidised, making them accessible for farmers from all socioeconomic backgrounds. Premium rates are determined based on the type of crop, past performance, and the farmer's decided level of coverage. The central and state governments share the premium subsidies in a predefined ratio, easing the burden on farmers. In addition, the cost of premiums is fixed and uniform throughout the country, ensuring transparency and simplicity in the insurance procedure.
  • Cereals, Pulses and Oilseeds: 2% (Kharif) and 1.5% (Rabi)
  • Annual Horticulture and Commercial Crops: 5%

Conclusion

The Pradhan Mantri Fasal Bima Yojana (PMFBY) highlights the government's commitment to the welfare of farmers and the agriculture sector. PMFBY protects farmers' interests while also promoting agricultural resilience and sustainability through comprehensive crop insurance coverage. As India pushes for agricultural development, PMFBY stands as a light of hope, encouraging farmers to face nature's difficulties and achieve a brighter future.
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