The Pradhan Mantri Fasal Bima Yojana (PMFBY) -- Lesser than a Solution -Santosh Verma

-Vikalp.ind.in

During the past three and half decades, various governments at the centre introduced several crop insurance schemes for the farmers to lessen the risks (partial or full) involved due to natural calamities and crop diseases. In 1985, in its very first attempt, the Government of India (GoI) launched Comprehensive Crop Insurance Scheme (CCIS) with a mandate to a national coverage. In 1999, CCIS was replaced with a new scheme called National Agricultural Insurance Scheme (NAIS). To implement this scheme, w.e.f. April 1, 2003, the Government designated Agriculture Insurance Company of India Ltd. (AIC), a public sector company, as its implementing agency. Further, another scheme, Weather Based Crop Insurance Scheme (WBCIS) was launched to cover the farmers in 20 states with a mandate to provide insurance against inconsistent climatic conditions (drought, flood, untimely rainfall, variations in temperature, frost, etc.)from the Kharif season 2007. With the purpose of insuring farmers, another attempt was made, when GoI introduced Modified National Agriculture Insurance Scheme (MNAIS) from the Rabi season 2010-11. The Scheme was launched on pilot basis in 50 districts of the country. Again, from the Rabi season 2013-14, the GoI started a new farmers’ insurance scheme – National Crop Insurance Programme (NCIP) through merging the MNAIS and WBCIS. But, on the request of the state governments, NAIS continued till the Rabi season 2015-16. Onwards the Kharif season 2016, the BJP government replaced NAIS and NCIP with the Pradhan Mantri Fasal Bima Yojana (PMFBY) and a restructuring of WBCIS was also made. So, the newly launched scheme, PMFBY, is just a continuation of earlier existing schemes with a few minor restructuring.

The PMFBY – what is is there?


The PMFBY was started with the objective to insure farmers against crop yield losses. The yield loss for a particular crop would be calculated through the difference between threshold yield (average yield for last seven years) and actual yield for a crop in that season.The compensation would be fixed based on the above said difference (degree of risk) for a particular notified crop. The PMFBY is compulsory to all the farmers who avail institutional loan (credit) – or to the farmers already having crop loan account/ Kisan Credit Card account (loanee farmers) to whom limit of credit is sanctioned/renewed for a particular crop. The Scheme also includes those farmers who are considered by the Government to be fit for insurance time to time. Apart from yield losses, the scheme insures against non-preventable risks, such as, lightening, storm, cyclone, hailstorm, typhoon, natural fire, tempest, hurricane, tornado, droughts, landslide, etc. So, if in a notified area, the insured farmers are intended to sow/plant a crop and have incurred expenditure, but due to bad/adverse weather conditions, farmers are not able to do so, in such cases, they are liable to get claims up to 25 percent of their total sum-insured. The scheme proposes that in a situation of post-harvest losses, the farmers would get insurance, if there is a crop loss (in the condition of cut and spread) within 14 days from harvest.

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Vikalp.ind.in, 27 January, 2019, https://www.vikalp.ind.in/2019/01/the-pradhan-mantri-fasal-beemayojana.html?fbclid=IwAR2L1NaOQQyqHJTpY3z3-Zza_hvZ6dufYqWBurTeeZi3n9Bb4gZORAq1bng

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