Pradhan Mantri Fasal Bima Yojna

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Context:

  • Gram Sabhas across the country have been asked to inform the farmers about the enrolment and benefits of Pradhan Mantri Fasal Bima Yojan (PMFBY) at the beginning of the Rabi Season today. The Gram Sabhas will also inform the farmers on how they can insure their crops under the Scheme. The Ministry of Agriculture and Farmers’ Welfare has requested the Ministry of Panchayati Raj and the State Governments to include this as an agenda in the upcoming Gram Sabhas, especially for the one scheduled on 2nd October 2018, in connection with Gandhi Jayanti.  This is as part of the awareness initiatives taken up at various levels by the Govt and Insurance Companies to create awareness about the Scheme and mobilise farmers to insure their crops.

About PMFBY:

  • In April, 2016, the government of India had launched Pradhan Mantri Fasal Bima Yojana (PMFBY) after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS).
  • Premium: It envisages a uniform premium of only 2% to be paid by farmers for Kharif crops, and 1.5% for Rabi crops. The premium for annual commercial and horticultural crops will be 5%.
  • The scheme is mandatory for farmers who have taken institutional loans from banks. It’s optional for farmers who have not taken institutional credit.

Objectives of PMFBY:

  • Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
  • Stabilizing the income of farmers to ensure their continuance in farming.
  • Encouraging farmers to adopt innovative and modern agricultural practices.
  • Ensuring flow of credit to the agriculture sector which contributes to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

Source:PIB