Pradhan Mantri Fasal Bima Yojana

The Union Government has decided to expand the scope of the Pradhan Mantri Fasal Bima Yojana (PMFBY) by including crop damage caused by animals as an eligible ground for insurance payouts. This addresses a long-pending demand of farmers and strengthens income security in agriculture.

About Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana was launched on 18 February 2016 by the Department of Agriculture, Cooperation and Farmers’ Welfare, Ministry of Agriculture.
The scheme aims to provide financial protection to farmers against crop losses arising from natural calamities, pests, and diseases.
It offers crop insurance at affordable premium rates and is implemented through a network of insurance companies and banks.

Objectives of PMFBY

The scheme seeks to provide financial assistance to farmers suffering crop loss due to unforeseen events.
It aims to stabilise farmers’ income and ensure continuity in farming activities.
PMFBY encourages the adoption of modern agricultural practices and promotes crop diversification.
It also enhances farmers’ creditworthiness while protecting them from production risks.

Eligibility Criteria

All farmers, including sharecroppers and tenant farmers, growing notified crops in notified areas are eligible under the scheme.
Coverage is compulsory for loanee farmers availing Seasonal Agricultural Operations loans from financial institutions.
For non-loanee farmers, participation in the scheme is voluntary.
Farmers must possess valid land ownership or land tenure documents and should not have received compensation for the same loss from any other source.
Special efforts are made to ensure adequate coverage of SC, ST, and women farmers.

Premium Structure

Farmers pay a maximum premium of 2% of the sum insured for Kharif food and oilseed crops.
For Rabi food and oilseed crops, the premium is 1.5%, while for commercial and horticultural crops, it is 5%.
The remaining premium amount is subsidised by the government.
In North-Eastern States, Jammu & Kashmir, and Himachal Pradesh, the government bears the entire premium cost.

Coverage under PMFBY

The scheme covers crop losses due to natural disasters such as droughts, floods, and hailstorms.
It also includes losses caused by pests and diseases and post-harvest losses arising from localised risks like landslides.
Losses due to war, nuclear risks, malicious damage, and other preventable causes are excluded from coverage.

Claim Settlement and Compensation

PMFBY aims to settle insurance claims within two months of harvest, ensuring timely compensation and reducing farmers’ dependence on informal credit sources.

Technology-Driven Implementation

The scheme uses satellite imagery, drones, and mobile applications to assess crop losses accurately.
The National Crop Insurance Portal (NCIP) facilitates digital interaction among farmers, banks, and insurers.
YES-TECH supports remote sensing-based yield estimation, while CROPIC uses geotagged photographs for real-time crop damage assessment.

Conclusion

The expansion of PMFBY to include animal-induced crop damage enhances the scheme’s comprehensiveness and reinforces the government’s commitment to farmer welfare and agricultural resilience.