Pradhan Mantri Fasal Bima Yojana : Updates
Union Ministry of Agriculture and Farmers Welfare stated that it is open to taking pro-farmer changes in Pradhan Mantri Fasal Bima Yojana (PMFBY) in response to the recent climate crisis and rapid technological advances.
- PMFBY Launched in 2016 and is being administered by the Ministry of Agriculture and Farmers Welfare.
- It replaced the National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
- Farmers including sharecroppers and tenant farmers growing notified crops in the notified areas are eligible for coverage.
- To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases.
- To stabilize the income of farmers to ensure their continuance in farming.
- To encourage farmers to adopt innovative and modern agricultural practices.
- To ensure the flow of credit to the agriculture sector.
- There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In the case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
- Premium over and above these limits is shared by the Central and State Governments on 50:50 basis except in North Eastern Region where it is 90: 10.
- There is no upper limit on Government subsidies. Even if the balance premium is 90%, it will be borne by the Government.
- Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers.
- This capping has now been removed and farmers will get a claim against the full sum insured without any reduction.