Resource centre on India's rural distress

Why Have Some States Lost Interest in the Centre's Flagship Crop Insurance Scheme? -Siraj Hussain

The Pradhan Mantri Fasal Bima Yojana programme will complete five years when rabi crops are harvested in March-April 2021. But it's been a bumpy ride for most of the way so far.

Out of all the ‘Pradhan Mantri’ schemes launched over the last few years – and there have been quite a few – none has received as much criticism as the PM Fasal Bima Yojana (PMFBY).

Due to the variety of crops even within a cluster, the small size of farms, differences in farming practices, uncertainty of weather and budgetary constraints of state governments, there is no central scheme which is more difficult to administer than this.

To its credit, the government has been responsive to the criticism and the scheme guidelines have undergone major changes twice, in September 2018 and February 2020.

Launched from Kharif 2016, the scheme has now been implemented for four seasons each of kharif and rabi. There have been three major criticisms of the scheme.

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