Explain in brief the salient features of Pradhan Mantri Fasal Bima Yojana.

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Points to Remember:

  • Objective: To understand the key features of Pradhan Mantri Fasal Bima Yojana (PMFBY).
  • Approach: Factual, focusing on the scheme’s design and implementation.

Introduction:

Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, is a flagship crop insurance scheme of the Government of India. It aims to provide comprehensive insurance coverage to farmers against crop losses due to natural calamities, pests, and diseases. The scheme replaced several existing crop insurance schemes, aiming for greater efficiency and wider coverage. The stated goal is to stabilize farmers’ income and reduce their vulnerability to agricultural risks.

Body:

1. Coverage and Eligibility:

PMFBY covers a wide range of crops, including food grains, oilseeds, pulses, commercial crops, and horticultural crops. Almost all farmers with operational holdings are eligible, irrespective of the size of their landholding. However, specific eligibility criteria may vary based on state-level regulations.

2. Risk Coverage:

The scheme covers a broad spectrum of risks, including those arising from natural calamities like drought, flood, hailstorm, fire, and lightning. It also covers losses due to post-harvest losses, pest attacks, and diseases. The specific perils covered can vary depending on the crop and the region.

3. Premium Subsidy:

The government provides a substantial premium subsidy to farmers, with the central government bearing a larger share for different categories of farmers. The premium rates are relatively low compared to previous schemes, making it more affordable for farmers. The exact subsidy percentage varies depending on the crop, the region, and the farmer’s category (small, marginal, etc.).

4. Claim Settlement Process:

The claim settlement process is designed to be relatively quick and efficient. Crop cutting experiments are conducted to assess the extent of crop damage, and claims are settled based on the assessed loss. However, delays in claim settlement have been reported in some areas, highlighting the need for improved implementation.

5. Technology Integration:

PMFBY leverages technology to improve efficiency and transparency. Remote sensing technology and GIS mapping are used to assess crop damage, reducing reliance on traditional methods. Digital platforms are also being used to facilitate the registration process and claim settlement.

6. Challenges and Criticisms:

Despite its positive aspects, PMFBY has faced criticism. Some farmers have reported difficulties in accessing the scheme, while others have complained about delays in claim settlements. Concerns have also been raised about the accuracy of crop loss assessments and the effectiveness of the technology used. The complexity of the scheme and the bureaucratic hurdles involved in accessing it remain significant challenges.

Conclusion:

PMFBY represents a significant effort to improve crop insurance coverage for Indian farmers. Its wide coverage, subsidized premiums, and use of technology are positive aspects. However, challenges remain in ensuring timely and efficient claim settlement, addressing farmer awareness and access issues, and improving the accuracy of crop loss assessments. Moving forward, a focus on streamlining the claim process, enhancing farmer awareness, and strengthening the technological infrastructure will be crucial to realizing the scheme’s full potential. A holistic approach that combines effective implementation with farmer education and capacity building is essential to ensure the scheme contributes meaningfully to the financial security and resilience of Indian farmers, aligning with the broader goals of sustainable agricultural development and rural prosperity.

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