Pradhan Mantri Fasal Bima Yojana

Source: DD News

Context: The Union Cabinet has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) until 2025-26, allocating ₹69,515 crore.

About Pradhan Mantri Fasal Bima Yojana:

• Launched in: 2016 by the Ministry of Agriculture & Farmers Welfare.

• Objective:

• Provide insurance coverage for crop losses caused by natural calamities. Stabilize farmers’ income and ensure continuance in farming. Promote modern agricultural practices and encourage credit flow to agriculture.

• Provide insurance coverage for crop losses caused by natural calamities.

• Stabilize farmers’ income and ensure continuance in farming.

• Promote modern agricultural practices and encourage credit flow to agriculture.

• Premium rates:

• Kharif crops: 2% of the sum insured. Rabi crops: 1.5% of the sum insured. Commercial/horticultural crops: 5% of the sum insured. Balance premium subsidized equally by the Central and State Governments.

• Kharif crops: 2% of the sum insured.

• Rabi crops: 1.5% of the sum insured.

• Commercial/horticultural crops: 5% of the sum insured.

• Balance premium subsidized equally by the Central and State Governments.

• Area-based approach:

• Coverage is implemented on a notified area basis for major crops. Unit of insurance: Village/Village Panchayat level for major crops.

• Coverage is implemented on a notified area basis for major crops.

• Unit of insurance: Village/Village Panchayat level for major crops.

• Beneficiary coverage:

• All farmers growing notified crops with insurable interest. Voluntary participation from Kharif 2020.

• All farmers growing notified crops with insurable interest.

• Voluntary participation from Kharif 2020.

• Risks covered:

• Yield Losses: Due to natural calamities like hailstorms, cyclones, droughts, floods, and pest attacks. Prevented Sowing: Claims up to 25% of the insured sum for adverse weather. Post-Harvest Losses: Coverage for up to 14 days for drying crops. Localized Risks: Hailstorm, landslides, and inundation affecting specific farms.

• Yield Losses: Due to natural calamities like hailstorms, cyclones, droughts, floods, and pest attacks.

• Prevented Sowing: Claims up to 25% of the insured sum for adverse weather.

• Post-Harvest Losses: Coverage for up to 14 days for drying crops.

• Localized Risks: Hailstorm, landslides, and inundation affecting specific farms.

• Key features:

• Technology Use: Satellite imagery, drones, remote sensing, and AI for yield assessment. YES-TECH Initiative: Technology-based yield estimation to reduce dependency on crop-cutting experiments. No Upper Limit: Government subsidy without a cap. Ease of Reporting: Farmers can report crop loss within 72 hours via the Crop Insurance App.

• Technology Use: Satellite imagery, drones, remote sensing, and AI for yield assessment.

• YES-TECH Initiative: Technology-based yield estimation to reduce dependency on crop-cutting experiments.

• No Upper Limit: Government subsidy without a cap.

• Ease of Reporting: Farmers can report crop loss within 72 hours via the Crop Insurance App.

Insta links:

• Agriculture