The Pradhan Mantri Fasal Bima Yojana (PMFBY) is an insurance program that protects farmers in India from agricultural losses caused by weather. The Indian government introduced the Pradhan Mantri Fasal Bima Yojana, Which scheme provides insurance coverage to farmers against weather-related crop losses insurance program, in 2016 to take the place of the National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS), which had previously existed.
The Pradhan Mantri Fasal Bima Yojana’s principal goal is to give farmers financial assistance and insurance protection in the event that their crop losses due to natural disasters, pests, illnesses, or unfavorable weather. The program attempts to protect farmers’ income and guarantee their stability in the event of crop failure.
The Pradhan Mantri Fasal Bima Yojana’s main characteristics are as follows:
Comprehensive coverage: The PMFBY offers insurance protection for all horticultural, oilseed, and food crops (including cereals, millets, and pulses). It covers crop losses caused by recognized hazards, such as drought, flood, cyclone, hailstorm, pest attacks, illnesses, etc., both before sowing and after harvest.
Premium Subsidy: The program provides farmers with premium subsidies to lessen their financial burden. Farmers can only pay a maximum premium of 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticulture crops. The premium rates are negligible. The federal and state governments split the remaining premium payment.
