What is Pradhan Mantri Fasal Bima Yojana (PMFBY) – a boon for farmers

Read all about What is Pradhan Mantri Fasal Bima Yojana ( प्रधान मंत्री फसल बीमा योजना) in details – Crop Insurance Scheme : The Union Cabinet on 13th  January, 2016 endorsed the Pradhan Mantri Fasal Bima Yojana (Prime Minister Crop Insurance Scheme) launch in which the premium rates to be paid by the farmers have been cut down generously so that  more farmers can avail insurance protection against any damage to crops on account of natural calamities. The plan will become effective from the forthcoming kharif season. This crop protection plan will be directed under the Ministry of Agriculture and Farmers’ Welfare, Government of India.

what is pradhan mantri fasal bima yojana details wiki images
Pradhan Mantri Fasal Bima Yojana

What is Pradhan Mantri Fasal Bima Yojana in details and its Objective :

Primary objective – proficient insurance protection to farmers

The primary aphorism of this new yield protection plan is to give a more proficient protection backing to the farmers of the nation and act as a financial support to a large number of farmers.

Low premium protection cover for farmers under new crop insurance scheme (minimum premium max insurance)

Govt. has chosen to give low premium protection cover to the farmers so they can manage regardless of the possibility that the crop is harmed. This declaration has been made amid the Makar Sankranti which is the harvest celebration of India, celebrated throughout the nation. It is praised as Pongal in the South, Lohri in North and Bihu in Assam. So the aggregate budget for making this venture a success is assessed to be around Rs. 17,600 crore.

PMFBY minimum premium and maximum insurance scheme for farmer
PMFBY minimum premium and maximum insurance scheme for farmer

Insurance protection in the past

In the year of 1999, a protection plan was launched with the name “National Agriculture Insurance Scheme (NIAS)”. Yet, it had a few flaws because of which it never turned into a win and couldn’t stand proficient for the insurance motive of the farmers. It was actualized just in 14 states of India, which are most influenced by weather calamities. States like Madhya Pradesh, Uttar Pradesh, Rajasthan, and so forth were in the rundown of the influenced states.

According to NIAS, the protection premium rates were 1.5 % and up to 3.5 % of the net aggregate amount assured for all food crops including pulses, cereals, oilseeds, grains, and so forth. In addition to this, actuarial premium rates were charged for commercial and horticulture crops. So because of each one of those weaknesses of the prior insurance plan, the Govt. has made arrangements for another risk protection plan that will give protection to all farmers from damage as well as act as a financial support for them.

Need of protection to farmers

A greater ratio of Indian population, in rural areas relies upon agribusiness and farming. So it is extremely important to fortify their crop protection plan in order to obviate them facing heavy losses to the crops due to any natural calamity such as drought, floods, cyclones, hail storms, etc. There are many reasons for poor production of crops in some areas.

Payment of premium under Pradhan Mantri Fasal Bima Yojana

Under the new plan, farmers will need to pay a uniform premium of two percent for all kharif crops and 1.5 percent for all rabi crops. For other commercial crops, they will need to pay a premium of 5 percent. The remaining portion of the premium, as in past plans, will keep on being borne by the Center and the individual state governments.

As the farmers are required to pay a premium portion of as high as 15 percent in many parts in the country, there has been a long-standing discourse on the need to cut down these rates. The Center’s turn to cut down these rates of interest is being seen as a noteworthy government approach outreach towards the farmers.

Leave a Reply

Your email address will not be published. Required fields are marked *