Government Schemes Yojana

Pradhan Mantri Fasal Beema Yojana

Mukesh Jindal
Written by Mukesh Jindal

India is the land of farmers where the maximum proportion of rural population depends on agriculture which is being constantly neglect. Honorable Prime Minister Shri Narendra Modi launches a new scheme Pradhan Mantri Faisal Bima Yojana (PMFBY) on 13th January 2016.
Under this, the farmers who take loans for their cultivation will have to pay lesser premiums.

Pradhan Mantri Fasal Bima Yojana

Objective of PMFBY

The objective of the Pradhan Mantri Faisal Bima Yojana (PMFBY) is to support sustainable production in the sector of Agriculture.

  • The Financial support and the insurances would be given to the farmers in case of failure of the crops due to any of the natural calamities, or attack of pests & diseases.
  • To ensure the continuous and stable income of farmers in the farming sector.
  • Make sure that the farmers adopt modern agricultural practices.
  • Promote innovation in agricultural practices.
  • Allow food security, crop diversification and to enhance the growth of the crops and protect the farmers from the production risks.

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Highlights of PMFBY

  • The scheme covers Kharif, Rabi, annual commercial as well as horticultural crops For Kharif crops, the farmer’s part of the premium is 2% of sum.
  • The Rabi crops, given premium, is 1.5 %.
  • For the commercial and the horticultural crops, the premium would be 5%.
  • The center and the state government would pay the rest of the amount of the premium.
  • A single insurance company would ensure the insurance across the state.
  • The private companies for the insurance can connect with the  Agriculture Insurance Company of India Limited (AIC) for the settling of the scheme.
  • The scheme will verify the loss of the crops and the estimation by the use of the remote sensing and the drones which will help in the settling of the claim easily and faster for the farmers.
  • The scheme is demand driven so no targets are fixed the scheme.

Advantages of the Scheme

The scheme has a clear advantage to the citizens with minimum or no profits to the government. The agricultural sector is very important and is neglecting since long. The farmers who constantly keep on working hard on low wages and then also face problems because of the changes in weather need this type of ease.

Premium Applicable for Crops

What amount you have to pay for the crop premium?

The premium of 2% for Kharif crops and 1.5 % for the Rabi crops, the farmers have to pay. There will be 5% premium for annual commercial and horticultural crops.
This scheme dedicates to bring in more than 50% of the farmers under its reach within the next 2–3 years. Around 25% of the claims will be sent to the farmer’s direct account. Also, the scheme will remain as it is.

The Scheme would cover local calamities, hailstorm,  landslide which not covers by the previous schemes.

Implementation of Faisal Bima Yojana

Do you know the Faisal bima yojana implementation?

  • The Scheme implements an ‘Area Approach Basis’ (i.e., Defined Areas) for each notifies crop for widespread calamities.
  • The premium is very low as earlier in the article depending on the crop type.
  • Allocation of the scheme present in budget 2016-2017 is Rs.5, 550 cores.
  • Single Insurance company under the scheme by Agriculture Insurance Company of India (AIC).
  • PMFBY is a replacement scheme of National Agriculture Insurance Scheme (NAIS) and Modified National Agriculture Insurance Scheme.

1. Food crops (Cereals, Millets, and Pulses)
2. Oilseeds
3. Annual Commercial or Annual Horticultural crops

Risk Covered under PMFBY

Which crops are covered under the scheme PMFBY?

• Prevented Sowing/ Planting Risk
The insure area prevents from sowing planting due to deficit rainfall or unfavorable seasonal Conditions.

• Standing Crop

The risk insurance for losses such as tornado, floods, Lightning, fire, Landslide and pests and diseases for the standing crops

• Post-Harvest Losses

The post-harvest the losses are also covers in the scheme as the after the harvest for 2 weeks the time which the crop is dry and spread.

• Localized Calamities

The Localize calamities are also be set in the scheme for the coverage such as hailstorm, landslide, and Inundation effect.

Risk Excluded from PMFBY

The PMFBY scheme would not cover the damages the crops which are as below:

  • Nuclear risks
  • Riots
  • Theft or act of enmity
  • War & kindre perils
  • Malicious damage
  • Crops damaged by the domestic animals

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The previous schemes were not as effective as this one which helps the farmers to deal with the problems of nature in a more effective manner.
The financial burden will be more on the government in this.
The wild animals pose risks to farmers in marginal areas of national parks and wildlife sanctuaries and also hilly states. For this scheme, there is an issue of bidding also. Due to this, in some states, private insurers don’t return after good profits of a year, if they find that next year, their profits may go down.

About the author

Mukesh Jindal

Mukesh Jindal

My name is Mukesh Jindal, and I am from New Delhi, India. I am an engineer by profession. I am employed by an IT company in which I work. My topics of interest include technology, mobile, and apps.

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