Daily Current Affairs : 16-January-2024
The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016 by Prime Minister Narendra Modi, stands as a testament to the government’s commitment to providing financial security to farmers in the face of agricultural uncertainties.
About PMFBY:
- Objective: The primary goal of PMFBY is to offer insurance coverage and financial support to farmers in case of crop failure due to natural calamities, pests, or diseases.
- Replacement of Schemes: PMFBY replaces the National Agricultural Insurance Scheme and the Modified NAIS, aligning with the ‘One Nation – One Scheme’ theme.
- Implementation: The scheme is executed through a multi-agency framework involving selected insurance companies, under the guidance of the Department of Agriculture, Cooperation & Farmers Welfare.
- Premium Subsidy: The premium cost, beyond the farmer’s share, is subsidized by both the States and the Central Government. The Central Government provides a higher subsidy of 90% for North Eastern States.
- Premium Structure: Farmers pay a premium of 2% for kharif foodgrain and oilseed crops, 1.5% for rabi foodgrain and oilseed crops, and 5% for horticultural crops.
Objectives of PMFBY:
PMFBY has several objectives aimed at supporting farmers and boosting the agricultural sector:
- Risk Mitigation: Provide insurance coverage against natural calamities, pests, and diseases to mitigate risks.
- Income Stabilization: Ensure a stable income for farmers, promoting their continuity in farming.
- Promotion of Innovation: Encourage the adoption of innovative and modern agricultural practices.
- Credit Flow: Facilitate the flow of credit to the agriculture sector.
Beneficiaries and Crop Coverage:
- Eligibility: All farmers growing notified crops in a designated area during the season are eligible.
- Coverage: Encompasses oilseeds, food crops, annual commercial/horticultural crops, and pilots for perennial horticultural crops with established yield estimation methodologies.
Risks Covered Under PMFBY:
- Prevented Sowing/Planting/Germination Risk:
- Occurs due to deficit rainfall or adverse seasonal/weather conditions.
- Standing Crop (Sowing to Harvesting):
- Comprehensive risk coverage against drought, dry spells, floods, pests, diseases, landslides, fire, lightning, storms, hailstorms, and cyclones.
- Post-Harvest Losses:
- Coverage up to two weeks from harvesting against specific perils like hailstorms, cyclones, cyclonic rains, and unseasonal rains.
- Localized Calamities:
- Loss/damage resulting from identified localized risks such as hailstorms, landslides, inundation, cloud bursts, and natural fires due to lightning affecting isolated farms.
- Add-on Coverage for Wild Animal Attacks:
- States may consider providing additional coverage for crop loss due to wild animal attacks where the risk is substantial and identifiable.
Important Points:
About PMFBY:
- Objective: Provide insurance coverage and financial support to farmers in case of crop failure.
- Replacement of Schemes: Replaces National Agricultural Insurance Scheme and Modified NAIS.
- Implementation: Multi-agency framework involving selected insurance companies under the guidance of the Department of Agriculture.
- Premium Subsidy: Shared by States and Central Government; higher subsidy (90%) for North Eastern States.
- Premium Structure: Varied rates for kharif, rabi, and horticultural crops.
Objectives of PMFBY:
- Risk Mitigation: Insurance coverage against natural calamities, pests, and diseases.
- Income Stabilization: Ensuring stable income to promote farmers’ continuity in farming.
- Promotion of Innovation: Encouraging adoption of modern agricultural practices.
- Credit Flow: Facilitating credit flow to the agriculture sector.
Beneficiaries and Crop Coverage:
- Eligibility: All farmers growing notified crops in a designated area during the season.
- Coverage: Encompasses oilseeds, food crops, annual commercial/horticultural crops, and pilots for perennial horticultural crops.
Risks Covered Under PMFBY:
- Prevented Sowing/Planting/Germination Risk:
- Due to deficit rainfall or adverse seasonal/weather conditions.
- Standing Crop (Sowing to Harvesting):
- Comprehensive risk coverage against drought, dry spells, floods, pests, diseases, landslides, fire, lightning, storms, hailstorms, and cyclones.
- Post-Harvest Losses:
- Coverage up to two weeks from harvesting against specific perils like hailstorms, cyclones, cyclonic rains, and unseasonal rains.
- Localized Calamities:
- Loss/damage resulting from identified localized risks such as hailstorms, landslides, inundation, cloud bursts, and natural fires due to lightning affecting isolated farms.
- Add-on Coverage for Wild Animal Attacks:
- States may provide additional coverage for crop loss due to wild animal attacks where the risk is substantial and identifiable.
Why In News
The insured gross cropped area of non-loanee farmers under Pradhan Mantri Fasal Bima Yojana (PMFBY) has reached a new high, reflecting a positive trend in the widespread recognition and adoption of the Centre’s crop insurance scheme among agricultural stakeholders nationwide.
MCQs about PMFBY
-
What is the primary objective of PMFBY?
A. Promoting modern agricultural practices
B. Ensuring a stable income for farmers
C. Encouraging One Nation – One Scheme theme
D. Subsidizing premium for horticultural crops
-
How is the premium cost under PMFBY subsidized?
A. Exclusively by the Central Government
B. Shared by States and Central Government
C. Farmers bear the entire premium cost
D. Premium is waived for North Eastern States
-
Which crops are covered under PMFBY?
A. Only rice and wheat
B. All crops except horticultural crops
C. Only oilseeds and food crops
D. Oilseeds, food crops, and horticultural crops
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