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Pradhan Mantri Fasal Bima Yojana

  • IASbaba
  • July 16, 2022
  • 0
Agriculture
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In News: Andhra Pradesh has decided to rejoin the crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season

  • Andhra Pradesh was one of six states that have stopped implementation of the scheme over the last four years.
  • The other five, which remain out, are Bihar, Jharkhand, West Bengal, Jharkhand, and Telangana.

Pradhan Mantri Fasal Bima Yojana (PMFBY):

  • PMFBY insures farmers against all non-preventable natural risks from pre-sowing to post-harvest.

Coverage:

  • The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) are being conducted under General Crop Estimation Survey (GCES).

Objectives:

  • To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases
  • To stabilise the income of farmers to ensure their continuance in farming
  • To encourage farmers to adopt innovative and modern agricultural practices
  • To ensure flow of credit to the agriculture sector

Revamped PMFBY

  • Completely Voluntary: It has been decided to make enrolment 100% voluntary for all farmers from 2020 Kharif.
  • Limit to Central Subsidy: The government has capped the Centre’s premium subsidy under these schemes for premium rates up to 30% for unirrigated areas/crops and 25% for irrigated areas/crops.
  • More Flexibility to States: The government has given the flexibility to states/UTs to implement PMFBY and given them the option to select any number of additional risk covers/features like prevented sowing, localised calamity, mid-season adversity, and post-harvest losses.
  • Penalising the Pendency: A provision has been incorporated wherein if states don’t release their share before March 31 for the Kharif season and September 30 for rabi, they would not be allowed to participate in the scheme in subsequent seasons.
  • Investing in ICE Activities: Insurance companies have to now spend 0.5% of the total premium collected on information, education and communication (IEC) activities.

Source: Indian Express

Previous Year Question

Q.1) With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: (2016)

  1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
  2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

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