Pradhan Mantri Fasal Bima Yojana : Extend
The Union government has decided to expand the ambit of the PM Fasal Bima Yojana to include crop damage by animals as a ground for payouts, a long-standing demand by farmers, an official said recently.
- Launched on 18th February 2016, PMFBY is a crop insurance scheme by the Department of Agriculture, Cooperation, and Farmers’ Welfare, Ministry of Agriculture.
- It aims to provide financial protection to farmers against crop loss due to natural disasters (hail, drought, famine), pests, and diseases.
- It provides crop insurance at a cost-effective premium to all Indian farmers.
- It is implemented through a network of insurance companies and banks.
- Objectives:
- To provide financial assistance and support to farmers suffering from crop damage or loss arising out of unforeseen events
- To stabilise the income of farmers and ensure continuance in farming
- To encourage the farmers to adopt modern and innovative agricultural practices
- To ensure crop diversification, and creditworthiness of the farmers, enhance growth, and competitiveness of the agriculture sector and protect the farmers from production risks
- All farmers, including sharecroppers and tenant farmers, growing the notified crops in the notified areas are eligible for coverage.
- All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crops would be covered compulsorily.
- Voluntary Component: The Scheme would be optional for the non-loanee farmers.
- Farmers must have an insurable interest in the insured crops.
Farmers must possess a valid and authenticated land ownership certificate or a valid land tenure agreement. - Farmers must not have received compensation for the same crop loss from any other medium or source.
- Special efforts shall be made to ensure maximum coverage of SC/ST/Women farmers under the scheme.
- Budget allocation and utilization under this scheme should be in proportion to land holdings of SC/ ST/ General along with women in the respective State cluster.
