Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Crop insurance claims worth over Rs 3,300 crore are pending under the Pradhan Mantri Fasal Bima Yojana (PMFBY).

According to a reply presented by the government in the Lok Sabha, an amount of over Rs 3,300 crore is pending to be paid to farmers across India in crop insurance claims since the year 2018-19. This delay is happening due to payment failure and delay in subsidy by the state.

The highest amount of payment was pending for farmers of Jharkhand, Telangana and Maharashtra.

Under Pradhan Mantri Fasal Bima Yojana (PMFBY), comprehensive crop insurance is provided from pre-sowing to post-harvest period against non-preventable natural risks at the following premium rates:

  • 2% for Kharif crops,
  • 5% for Rabi crops,
  • 5% for horticulture and commercial crops

Desired Beneficiary:

  • All farmers including sharecroppers and tenant farmers growing notified crops in a notified area. It is to be known that the unit of insurance is determined by the state government.
  • The scheme was reformed in the year 2020 to address the existing challenges in the implementation of PMFBY.

These improvements include:

  • Making enrollment voluntary for all farmers: It is important to note that earlier, insurance was mandatory only for indebted farmers.
  • Reducing the central share of premium subsidy from 50% to 25% for irrigated areas and 30% for un-irrigated areas.
  • Districts having irrigation facility in 50% or more area will be considered as irrigated area/district.

Source – The Hindu

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