Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Why in news : The centre is considering to take “pro-farmer changes” to the current scheme to meet the challenges of recent climate crisis and rapid technological advances.

Basic facts about the scheme :

  • The scheme has been launched by MINISTRY OF AGRICULTURE & FARMERS WELFARE.
  • It is an insurance service for farmers, formulated in line with One Nation–One Scheme theme by replacing earlier two schemes National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
  • It was formulated with the intention to reduce the premium burden on farmers and ensure early settlement.
  • The scheme was previously compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for other others.
  • But it is now voluntary since 2020 when reforms were introduced to the scheme.

Objective of the scheme :

  • To provide financial support to farmers suffering crop damage/loss arising out of unforeseen events
  • To stabilize the income of farmers to ensure that they continue doing farming
  • To encourage farmers to adopt modern and innovative agricultural practices

Recent news : many states are opting out of the scheme due to issues like financial burden to the states, low premium and reluctance of insurance companies etc. The scheme also suffers challenges such as settlement of claims and implementation issues.

Syllabus : Prelims+ Mains; schemes in news; Gs-3- Agriculture