Agriculture in India are frequently affected by natural calamities such as droughts, floods, cyclones, storms, landslides and earthquakes. These severely affect farmers through loss in production and farm income, and they are beyond the control of the farmers.
Crop (Agriculture) Insurance is a system of safeguarding and protecting the agriculturist against financial losses due to uncertainties that may arise agricultural losses arising from named or all unforeseen perils beyond their control.
Agricultural insurance is highly dependent on the government support in various forms like subsidy on premium, reimbursement of administrative expenses of insurance companies, reinsurance support for risky crop lines, technical guidance and financial.
The Government of India has introduced many agricultural schemes throughout the country. Crop insurance is one such scheme to help the farmers in distress.
The new Crop Insurance Scheme Pradhan Mantri Fasal Bima Yojana is in line with One Nation – One Scheme theme. It incorporates the best features of all previous schemes and at the same time, all previous anomalies have been eliminated.
What is Pradhan Mantri Fasal Bima Yojana?
The Pradhan Mantri Fasal Bima Yojna (PMFBY) was introduced on 14th January 2016 by Mr. Narender Modi Prime Minister of India, in a move aimed at reducing agricultural distress and farmer’s welfare without having to affect hefty hikes in the Minimum Support Prices (MSP) of agricultural products prices due to Monsoon fluctuations induced risks The PMFBY Scheme operates on the basis Defined Areas for each notified crop for widespread calamities.
Key Objectives of the Schemes:
- Providing financial support to farmers suffering crop loss arising out of unpredicted events
- Sustain the income of farmers to ensure their continuance in farming
- Motivating farmers to adopt innovative and modern agricultural practices.
- Flow of credit to the agriculture sector which will contribute to crop diversification, food security and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.
Who can be covered under Pradhan Mantri Fasal Bima Yojna Scheme?
All farmers who have been sanctioned Seasonal Agricultural Operations crop loans from Financial Institutions.
The Scheme is optional for non-loanee farmers of Banks.
Coverage of Risks and Exclusions under PMFBY Scheme:
Following stages of the crop and risks leading to crop loss are covered under the PMFBY Scheme.
- Preventing Sowing/Planting/Germination Risk: Insured area is prevented from sowing / planting / germination due to deficit rainfall or adverse seasonal/weather conditions.
- Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spell, Flood, Inundation, widespread Pests and Disease attack, Landslides, Fire due to natural causes, Lightening, Storm, Hailstorm and Cyclone also covered.
- Post-Harvest Losses: Coverage is available only upto a maximum period of two weeks 14 days from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition in the field after harvesting against specific perils of Hailstorm, Cyclone, Cyclonic rains and Unseasonal rains.
- Localized Problems: Loss/damage to notified insured crops resulting from occurrence of identified localized risks of Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightning affecting isolated farms in the notified area.
- Additional add on coverage for crop loss due to attack by wild animals: The States may consider providing add- on coverage for crop loss due to attack by wild animals wherever the risk is perceived to be substantial and is identifiable.
- Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
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