Daily News Analysis

PMFBY

13th July, 2021 Agriculture

Context

  • Assam's Agriculture department has set a ambitious target for enrolling five lakh farmers under Pradhan Mantri Fasal Bima Yojana.

 

About PMFBY

  • The Pradhan Mantri Fasal Bima Yojana (PMFBY) launched in 2016 is an insurance service for farmers for their yields.
  • It was formulated in line with One Nation–One Scheme
  • It aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum.
  • PMFBY aims to provide a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.
  • The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available. The scheme is implemented by empanelled general insurance companies.
  • Selection of Implementing Agency (IA) is done by the concerned State Government through bidding.
  • The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for other others. The scheme is being administered by Ministry of Agriculture.
  • Premium: The prescribed premium is 2% to be paid by farmers for all Kharif crops and 1.5% for all rabi crops.
  • In the case of annual commercial and horticultural crops, the premium is 5%.
  • Premium cost over and above the farmer share was equally subsidized by States and GoI.
  • However, central government shared 90% of the premium subsidy for North Eastern States to promote the uptake in the region.

 

PMFBY 2.0

  • The central government had revamped PMFBY in the 2020 Kharif season. Features are:
  • Enrolment is 100% voluntary for all farmers from 2020 Kharif.
  • Centre’s premium subsidy: 30% for unirrigated areas/crops and 25% for irrigated areas/crops.
  • States/UTs have option to select any number of additional risk covers/features.
  • Insurance companies have to now spend 0.5% of the total premium collected on information, education and communication (IEC) activities.

 

https://economictimes.indiatimes.com/news/economy/agriculture/assams-agriculture-department-has-set-a-ambitious-target-for-enrolling-five-lakh-farmers-under-pradhan-mantri-fasal-bima-yojana-for-ensuing-sali-paddy/articleshow/84353827.cms