Pradhan Mantri Fasal Bima Yojna (PMFBY)

The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched by the Government of India on 18th February 2016, is a landmark crop insurance scheme designed to provide financial protection to farmers in India against crop loss or damage due to natural calamities, pests, diseases, and other unforeseen risks. The scheme is aimed at enhancing the financial security of farmers and helping them recover from the devastating effects of crop failures. It is part of the government’s broader strategy to improve agricultural insurance coverage, encourage the adoption of new technologies, and provide a safety net for farmers who are often at the mercy of unpredictable weather patterns and climate change.

Objectives of the Scheme

The Pradhan Mantri Fasal Bima Yojana aims to achieve the following key objectives:

1. Provide Financial Support in Case of Crop Loss:
   • The primary goal of the scheme is to provide timely financial assistance to farmers who suffer crop damage due to natural disasters, such as droughts, floods, hailstorms, and cyclones. This financial support helps farmers recover from the losses and continue farming.
2. Stabilize Farmers’ Income:
   • By offering crop insurance coverage, the PMFBY helps stabilize farmers’ income, reducing the financial burden they face after crop failure. This is particularly critical for farmers who rely solely on agriculture for their livelihood.
3. Encourage Adoption of Modern Agricultural Practices:
   • The scheme also encourages farmers to adopt modern and innovative agricultural techniques by providing them with a safety net. It gives them the confidence to experiment with new technologies without the fear of bearing the entire financial risk if their crops are affected by natural calamities.
4. Enhance Agricultural Growth and Competitiveness:
   • The insurance scheme promotes crop diversification and encourages the growth of the agricultural sector. By offering financial protection, it improves the creditworthiness of farmers, enabling them to access credit from financial institutions and promoting agricultural growth.
5. Promote Risk Management in Agriculture:
   • One of the key objectives of the scheme is to help farmers manage risks associated with agricultural production, which is vulnerable to a range of uncontrollable factors such as weather conditions, pests, and diseases.

Benefits of Pradhan Mantri Fasal Bima Yojana (PMFBY)

The PMFBY provides several benefits to farmers, ensuring that they are financially protected in the event of crop loss or damage:

1. Affordable Premium Rates:
   • One of the major advantages of PMFBY is that it provides affordable premiums for farmers. The scheme offers subsidized premiums, which means farmers pay a minimal amount while the government subsidizes the rest.
     • For Kharif food and oilseed crops, the premium payable by the farmer is capped at 2% of the sum insured.
     • For Rabi food and oilseed crops, the premium is capped at 1.5% of the sum insured.
     • For annual commercial and horticultural crops, the premium is capped at 5% of the sum insured.
   In states like the Northeastern regions, Jammu & Kashmir, and Himachal Pradesh, the government covers the entire premium cost, which makes the scheme even more accessible to farmers in these areas.
2. Comprehensive Coverage:
   • The PMFBY offers comprehensive coverage that protects farmers against a wide range of risks, including:
     • Natural Calamities: Risks such as droughts, floods, hailstorms, and cyclones are covered.
     • Pests and Diseases: Coverage is provided for crop damage caused by pests and diseases.
     • Post-Harvest Losses: If the crops are damaged after harvest due to local risks like hailstorms or landslides, the scheme covers such losses as well.
     • Prevented Sowing: If farmers are unable to sow crops due to adverse weather conditions, they are eligible for insurance claims of up to 25% of the sum insured.
3. Timely Compensation:
   • One of the key features of the PMFBY is the commitment to provide timely compensation to farmers. The insurance claims are processed within two months of the harvest, ensuring that farmers receive compensation quickly. This helps them manage their finances and resume farming activities for the next crop cycle.
4. Technology-Driven Implementation:
   • The scheme utilizes advanced technology such as satellite imaging, drones, and mobile apps to assess crop loss accurately. This ensures that claims are settled based on precise data and minimizes the chances of fraudulent claims.
5. Access to Credit and Financing:
   • By participating in PMFBY, farmers enhance their creditworthiness and are more likely to receive financial assistance from banks and financial institutions. This encourages them to invest in modern farming techniques, increase their productivity, and expand their agricultural activities.
6. Risk Management Tools:
   • The PMFBY provides farmers with a structured risk management tool, which helps them safeguard their livelihoods from unpredictable natural events. The insurance scheme allows farmers to mitigate the financial risks associated with their primary source of income.
7. No Upper Limit on Coverage:
   • Unlike traditional crop insurance policies that might have an upper limit on the amount insured, the PMFBY does not impose such limits on the coverage amount, offering flexibility to farmers based on the scale of their agricultural operations.

Risks Covered Under PMFBY

The scheme provides coverage for various risks that can cause significant financial damage to farmers:

1. Yield Losses (Standing Crops):
   • This includes yield losses due to natural calamities such as storms, floods, drought, hailstorms, lightning, and other adverse conditions. The government compensates farmers based on the loss of crop yield caused by these events.
2. Prevented Sowing:
   • If unfavorable weather conditions prevent sowing of crops, farmers may not be able to plant insured crops. In such cases, they are eligible for indemnity claims up to 25% of the sum insured for the insured crops.
3. Post-Harvest Losses:
   • Losses that occur after harvesting, due to localized risks such as hailstorms or cyclonic rains, are also covered by the PMFBY for up to 14 days after harvest.
4. Localized Calamities:
   • The scheme covers localized calamities such as hailstorms, landslides, and localized floods that affect specific areas within the notified regions. This ensures that farmers whose lands are affected by such events receive compensation even if the calamity is not widespread.

Eligibility Criteria

The Pradhan Mantri Fasal Bima Yojana is available to all farmers in India who meet the following eligibility criteria:

1. Farmers (including tenant farmers and sharecroppers):
   • All farmers who are growing notified crops in the notified areas are eligible to apply for insurance under the PMFBY.
   • Both tenant farmers and sharecroppers can apply, provided they have an insurable interest in the crops being insured.
2. Land Ownership or Tenure Agreement:
   • Farmers must either be landowners or have a valid land tenure agreement to insure their crops. The land must be registered in the name of the farmer, or there must be a formal agreement between the landowner and the farmer.
3. Insurance Application:
   • Farmers must apply for crop insurance within the prescribed timeframe, usually within two weeks of the sowing season. Failure to apply within this period may render them ineligible for coverage for that crop season.
4. Aadhaar and Bank Details:
   • To ensure transparency, farmers must have a valid Aadhaar number and bank account to facilitate claim settlement.

Exclusions under PMFBY

While the scheme offers extensive coverage, there are certain exclusions:

1. Non-Notified Areas:
   • The PMFBY only applies to notified areas, and losses incurred in non-notified regions are not covered. Farmers in areas not covered by the scheme will not be eligible for compensation.
2. Losses Outside the Crop Cycle:
   • Crop losses occurring outside the designated crop cycle (e.g., after the crop has been harvested or before the sowing season) are not eligible for compensation.
3. Negligence or Non-Compliance:
   • Losses arising from negligence or failure to follow recommended agricultural practices (e.g., improper handling of crops, failure to take preventive measures) may not be covered.
4. Non-Payment of Premium:
   • Farmers who fail to pay the required premium amount may not be eligible for compensation under the scheme.

Application Process for PMFBY

The application process for Pradhan Mantri Fasal Bima Yojana is available both online and offline. Farmers can apply via the following methods:

Online Application:

1. Step 1: Visit the Official Website:
   • Farmers must visit the official PMFBY website and navigate to the “Farmer Corner” section.
2. Step 2: Register:
   • Farmers need to register on the website by providing basic details, including their Aadhaar number, mobile number, and other relevant information.
3. Step 3: Apply for Insurance:
   • After registration, farmers can log in and apply for crop insurance under the PMFBY by selecting the “Apply for Crop Insurance” option.
4. Step 4: Upload Documents:
   • Farmers must upload necessary documents such as their bank details, Aadhaar card, and land ownership proof.
5. Step 5: Make Payment:
   • Farmers can either pay the premium online or opt for the “Pay Later” option. After payment, they will receive an acknowledgment receipt.

Offline Application:

1. Step 1: Visit Participating Bank or Insurance Office:
   • Farmers can also visit their local participating bank or insurance office to complete the application process.
2. Step 2: Fill the Form:
   • Farmers must fill out the application form, provide required documents, and pay the premium.
3. Step 3: Acknowledgment:
   • Upon submission, farmers will receive a reference number to track the status of their application.

Conclusion

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a significant initiative by the Indian government aimed at providing financial security to farmers in times of distress due to crop damage. With its affordable premiums, comprehensive coverage, and technology-driven implementation, it ensures that farmers receive timely compensation, thus helping them recover from losses and continue farming. Through this scheme, the government not only stabilizes farmers’ incomes but also encourages modern agricultural practices and greater participation in the agricultural insurance system. As agriculture continues to face challenges due to climate change, PMFBY remains a critical tool for ensuring the sustainability and growth of Indian agriculture.