The Pradhan Mantri Fasal Bima Yojana (PMFBY)

Context:

  • The Pradhan Mantri Fasal Bima Yojana (PMFBY) has successfully entered its 7th year of implementation with the upcoming Kharif 2022 season, completing 6 years of its implementation since its launch announcement on 18th February 2016 by Prime Minister Shri Narendra Modi at Sehore, Madhya Pradesh

Pradhan Mantri Fasal Bima Yojana (PMFBY):

  • It provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.
  • Scope: All food & oilseed crops and annual commercial/horticultural crops for which past yield data is available.
  • Premium: The prescribed premium is 2% to be paid by farmers for all Kharif crops and 1.5% for all rabi crops. In the case of annual commercial and horticultural crops, the premium is 5%.
    • Premium cost over and above the farmer share was equally subsidized by States and GoI.
    • However, GoI shared 90% of the premium subsidy for North Eastern States to promote the uptake in the region.
  • The scheme was compulsory for loanee farmers availing Crop Loan/Kisan Credit Card (KCC) account for notified crops and voluntary for others.
  • The Scheme covers over 5.5 crore farmer applications on average per year.
  • Aadhar seeding (linking Aadhaar through Internet banking portals) has helped in speedy claim settlement directly into the farmer accounts.

Way Forward

  • Rationalising waivers and service delivery: Loan waiver schemes announced by state governments along with mandatory Aadhar linkage should be rationalised to enable PMFBY of greater coverage.
  • Enable Timely Compensation: There has been reports of delayed compensation by some of the states.

Source: THE HINDU.

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