Pradhan Mantri Fasal Bima Yojana (PMFBY ) – Eligibility & Benefits

Launched on January 13, 2016, and administered by the Ministry of Agriculture and Farmers Welfare, Government of India Pradhan Mantri Fasal Bima Yojana (PMFBY) is an Indian government-sponsored crop insurance scheme aimed at providing financial support and risk alleviation to farmers in the event of crop failure due to natural causes or diseases.

What is PMFBY (Pradhan Mantri Fasal Bima Yojana)? 

PMFBY is a pivotal agricultural insurance initiative in India, launched by the Government to safeguard the interests of farmers. This visionary scheme falls under the purview of the Ministry of Agriculture and Farmers Welfare and aims to provide critical financial support and risk mitigation to the agricultural community.

The scheme operates on a subsidy-based model, wherein farmers pay a nominal premium for crop insurance while the central and state governments share the burden of the remaining premium amount. It extends its protective umbrella to cover an extensive range of crops, encompassing food, oilseeds, and horticultural crops. The scheme’s coverage is comprehensive, protecting farmers against yield losses resulting from natural calamities like droughts, floods, cyclones, pests, and diseases.

Objectives of PMFBY 

• Risk Mitigation: PMFBY primarily seeks to mitigate the financial risks faced by farmers due to crop loss or damage caused by natural calamities, pests, and diseases. By providing insurance coverage, it ensures that farmers do not face complete financial ruin in the event of crop failure.
• Income Stabilisation: The scheme aims to stabilise farmers’ income by providing them with a safety net. This helps in reducing income variability caused by unpredictable weather conditions and other external factors.
• Encourage Adoption of Modern Agricultural Practices: PMFBY incentivises farmers to adopt modern and scientific agricultural practices by providing them with a sense of security. Knowing that their losses will be compensated, farmers are more likely to invest in improved techniques, seeds, and technology.
• Financial Inclusion: The scheme promotes financial inclusion by making crop insurance accessible and affordable for all farmers, including tenant farmers and sharecroppers. It aims to cover a wide range of crops to cater to the diverse agricultural landscape in India.
• Promote Sustainable Agriculture: By reducing the risks associated with farming, PMFBY encourages farmers to adopt sustainable and climate-resilient agricultural practices, which can contribute to long-term agricultural sustainability.
• Technology Integration: The scheme promotes the use of technology, including remote sensing, satellite imagery, and smart devices, to assess crop damage and facilitate quick and accurate claims processing.
• Reducing Indebtedness: PMFBY helps reduce the burden of debt on farmers by providing them with financial support when they face crop losses, preventing them from falling deeper into debt traps.

Eligibility for PMFBY 

• All Farmers: PMFBY is open to all farmers, including small, marginal, and large-scale farmers. It encompasses both individual farmers and groups or clusters of farmers.
• Crops Covered: The scheme covers various crops, including food crops, oilseeds, and horticultural crops. The specific list of crops eligible for coverage may vary from state to state, and it is important for farmers to check with local agricultural authorities for details.
• Geographical Coverage: PMFBY is available across India, and its eligibility is not restricted by geographical location. It covers farmers in both rural and urban areas, in line with the crops grown.
• Notification of Crops: Farmers must ensure that the crops they are cultivating are notified crops in their respective states or union territories. Notified crops are those for which insurance coverage is available under PMFBY.
• Compensation: The crops should not have yielded any compensation for the farmer out of any other sources. 
• Submission of Application: Farmers must submit their applications for crop insurance within the specified enrolment period (usually 2 weeks). This period is typically aligned with the sowing or planting season for different crops.
• Bank Account: Farmers are encouraged to have a bank account as claims are usually settled through direct bank transfers.

It’s essential for farmers to contact their local agricultural departments, insurance agents, or banks for specific details about enrolment, premium payments, and documentation required for PMFBY in their region. 

Coverage and Premiums Under PMFBY 

PMFBY offers crop insurance for cereals, oilseeds, legumes, cotton, sugarcane, and horticulture crops. The precise yields covered by PMFBY may differ according to the state where the programme is implemented, as various states may have more prominent crops.

Farmers are insured under PMFBY from the loss of crops due to a variety of risks, including natural catastrophes such as shortages, flooding, and cyclones, as well as pests and diseases. The PMFBY insurance coverage is based on the crop’s average yield, as established by a government-funded system of crop-cutting experiments.

The sum insured is derived by multiplying the crop’s average production by the territory in the plantation and the crop’s MSP.

The premium for the Pradhan Mantri Fasal Bima Yojana is shown in the table below-

The government supports part of the payments for marginal and small-scale farmers, with the farmers paying the remainder. In addition, the government covers the whole premium for farmers in the northeastern states, Jammu and Kashmir, and Himachal Pradesh.

How Are Claims Processed Under PMFBY? 

• Notice of Loss Submission: Farmers report crop loss to the insurer within 72 hours of the event.
• Crop Cutting Experiments(CCE): Yield is measured in sample plots to determine loss.
• Crop Assessment Report (CAR): CAR is prepared using CCE data for compensation calculation.
• Claim Application (Form-II): The farmer submits the claim application with the necessary documents.
• Claims Verification: The insurer verifies the claim and supporting documents.
• Claims Settlement: Approved claims result in compensation payment.
• Compensation Payment: The amount is directly transferred to the farmer’s bank account.

Advantages of Pradhan Mantri Fasal Bima Yojana 

• Financial Security: PMFBY provides financial security to farmers by compensating them for crop losses due to natural calamities, pests, or diseases, reducing their vulnerability to income fluctuations.
• Risk Mitigation: The scheme helps farmers mitigate risks associated with unpredictable weather conditions, ensuring they do not face complete financial ruin in the event of crop failure.
• Affordable Premiums: Premiums are subsidised by both the central and state governments, making crop insurance more affordable and accessible to a wide range of farmers.
• Encourages Modern Farming: Farmers are incentivised to adopt modern agricultural practices and invest in technology and improved seeds, leading to increased productivity.
• Promotes Sustainable Agriculture: PMFBY encourages sustainable farming practices by providing a safety net, reducing the risk of adopting new, climate-resilient techniques.
• Reduced Indebtedness: Farmers are less likely to accumulate debt or fall into debt traps, as PMFBY provides a buffer against financial losses.
• National Food Security: By safeguarding crop yields, PMFBY contributes to national food security by ensuring a consistent supply of agricultural produce.

Conclusion

PMFBY stands as a vital pillar of support for Indian farmers. By providing financial security, risk mitigation, and incentives for modern and sustainable agriculture, it not only bolsters the resilience of farmers but also contributes to the nation’s food security and economic development

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