Government of India has started the Pradhan Mantri Fasal Bima Yojana 2024. Under this scheme, the government will compensate for the loss of your crops. To benefit from this scheme, you need to apply online through the official website.
PM Fasal Bima Yojana 2024 Overview
- Scheme Name: Pradhan Mantri Fasal Bima Yojana
- Department: Department of Agriculture and Farmers Welfare
- Launched By: Central Government
- Beneficiaries: All farmers in India
- Main Objective: Provide financial assistance to farmers
- Maximum Amount: Rs. 2 lakh
- Helpline Numbers: 1800-180-1111 / 1800-110-001
- Application Process: Online/Offline
- Official Website: pmfby.gov.in
If you don’t know how to apply online, don’t worry. In this article, we will explain the entire process of applying online. So, make sure to read till the end.
Understanding the Pradhan Mantri Fasal Bima Yojana (PMFBY)
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crucial initiative by the Government of India aimed at providing comprehensive crop insurance to farmers. This scheme, launched by the Ministry of Agriculture and Farmers’ Welfare, offers financial support to farmers in the event of crop loss due to various unforeseen circumstances. Let’s delve deeper into the details of this scheme, its objectives, and its impact on the farming community.
Coverage Under PMFBY
The Pradhan Mantri Fasal Bima Yojana covers a wide range of situations to protect farmers against potential losses. Here are some key points about what is covered under the scheme:
- Natural Disasters: Local natural disasters such as landslides, hailstorms, floods, and droughts are covered under PMFBY. These disasters can cause significant loss of yield, impacting farmers’ livelihoods.
- Pest Infestation: The scheme also covers crop loss due to pest infestations, which can severely damage crops and reduce yields.
- Post-Harvest Losses: PMFBY covers losses that occur after harvesting crops, including damages caused by cyclones, unusual rains, and unseasonal rainfall.
However, it’s important to note that PMFBY does not cover certain situations:
- Losses due to war or similar hazardous activities.
- Crop damage due to riots or acts of enmity.
- Damage caused by domestic and/or wild animals.
- Pollution due to nuclear risks.
- Malicious damage leading to crop destruction.
To ensure accurate and speedy crop loss assessment, the scheme recommends using remote sensing technology, mobile phones, and drones.
Objectives of PMFBY
The Pradhan Mantri Fasal Bima Yojana has several key objectives aimed at supporting farmers and promoting sustainable agricultural practices:
- Financial Support: Provide monetary assistance to farmers in distress due to crop loss and damage caused by unforeseen disasters.
- Income Stability: Ensure farmers’ income is stabilized so they can continue their farming activities without financial strain.
- Modern Techniques: Encourage farmers to adopt modern tools and farming practices for efficient and high-yield agriculture.
- Credit Flow: Ensure the flow of credit to the agriculture sector, contributing to food security, crop diversification, growth, and competitiveness in the farming sector while protecting farmers from production risks.
Revamping the Pradhan Mantri Fasal Bima Yojana
The Union Cabinet has approved several changes to address challenges in the implementation of the crop insurance scheme. These changes aim to improve the efficiency and effectiveness of the scheme, making it more beneficial for farmers. The revamped PMFBY 2.0 focuses on faster claim assessment and settlement proportional to crop loss through a series of technological interventions and further amendments by the government.
- Increased Subsidy for North-Eastern States: The central government’s share in premium subsidy for North-Eastern states has been increased to 90% from the previous 50%.
- Information, Communication, and Education (ICE) Activities: 0.5% of the total premiums collected by insurance companies will be spent on ICE activities to raise awareness and educate farmers.
Flexibility to States
The revamped scheme provides states and Union Territories with more flexibility:
- Funding Options: States/UTs can choose their level of funding for any crop or area.
- Additional Risk Covers: States/UTs can opt to implement the scheme with additional risk covers.
Cap on Central Subsidy
The central subsidy has been capped to manage costs:
- For unirrigated areas/crops, the central subsidy is limited to premium rates up to 30%.
- For irrigated areas/crops, the subsidy is capped at 25%.
Areas with more than 50% of their land under irrigation will be considered irrigated areas.
Penalties for States
To ensure timely release of funds, the scheme includes penalties for states that delay releasing the required premium subsidy to insurance companies:
- If states delay beyond the set deadlines (March 31 for the Kharif season and September 30 for the Rabi season), they will not be allowed to implement the scheme in subsequent seasons.
To improve the accuracy of crop loss estimates, the scheme will adopt advanced solutions, including the Smart Sampling Technique (SST).
Why Revamp PMFBY?
The Pradhan Mantri Fasal Bima Yojana is being revamped to:
- Make farmers self-reliant in managing risks in agricultural production.
- Protect farm income.
- Enable farmers in North-Eastern states to manage agricultural risks.
- Ensure faster claim settlements through accurate yield estimates.
Issues Related to the Scheme
Despite its benefits, the PMFBY has faced several challenges:
- Financial Constraints: The financial limitations of state and central governments and low claim ratios during normal seasons have hindered the scheme’s implementation in some states.
- Delayed Fund Release: Delays in releasing funds by state governments have led to delays in insurance payouts, defeating the scheme’s purpose of providing timely financial assistance to farmers.
- Claim Settlement Issues: Many farmers have expressed dissatisfaction with the compensation levels and delays in claim settlement. The significant role and power of insurance companies have also been a point of concern, as they sometimes fail to assess losses accurately and do not pay the claims.
Implementation Issues
Insurance companies often show little interest in bidding for areas prone to crop loss, making it difficult to ensure widespread coverage. Additionally, the profitability of insurance companies is higher when crop failures are low, and vice versa, leading to a lack of interest in high-risk areas.
Solutions
To make the Pradhan Mantri Fasal Bima Yojana more effective, there needs to be thorough coordination between states and the central government. Rather than paying subsidies under this scheme, the state government should invest in a new insurance model that better meets farmers’ needs.
For more information on the Pradhan Mantri Fasal Bima Yojana, visit the official website here.