Pradhan Mantri Fasal Bima Yojana (PMFBY) & Login Portal

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana



Introduction

A crop insurance programme called Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced by the Indian government in 2016. The programme was started with the intention of giving farmers financial assistance in the event that their crops fail due to natural disasters, pests, or illnesses. By shielding farmers against potential financial losses brought on by crop failure, the programme aims to help them maintain their way of life.

The Department of Agriculture, Cooperation, and Farmers Welfare oversees the implementation of the programme on behalf of the Ministry of Agriculture and Farmers Welfare. In all Indian states and union territories, the programme is offered to all farmers, including tenant farmers and sharecroppers.

Pradhan Mantri Fasal Bima Yojana Login Portal: 

https://pmfby.gov.in/farmerLogin


Key Characteristics of PMFBY

Premium Rates

The premium rates for the plan are set at 2% of the amount covered for crops grown in the Kharif and Rabi seasons and at 1.5% and 5%, respectively, for crops grown in the current growing season. The Central and State Governments split the remaining premium evenly.

Coverage

All food, oilseed, yearly commercial, and horticultural crops are all covered by the programme. The programme also covers post-harvest losses brought on by natural disasters and unfavourable weather.

Sum covered

The amount covered under the plan is determined by the cost of cultivation and the average crop output in the region. At the district level, the insured amount is set, and it is reevaluated every year.

Settlement of Claims

Claims under the programme are resolved in accordance with agricultural yield information submitted by the State Governments. The farmer may be entitled to compensation if agricultural yields are reduced as a result of pests, illnesses, or other natural disasters.

Simple Enrollment

The programme enables farmers to enlist quickly using a smartphone app, a web site, or an offline mode.

Technology-enabled

The programme makes use of technology to guarantee openness and hasten the claims-resolution procedure. To evaluate crop damage and production loss, the plan makes use of remote sensing, satellite photography, and drones.

PMFBY benefits include

Financial Safety: The programme offers farmers financial security in the event that their crops fail due to disasters, pests, or illnesses caused by the elements. Farmers who may otherwise be forced to experience financial hardship due to crop loss are helped by the programme.

Affordable Premiums: By providing farmers with reasonable premiums, the programme guarantees that a greater number of farmers are given access to its benefits.

Timely Claim Settlement: The technology used in the programme guarantees that claims are settled quickly, which helps farmers who want cash assistance right away.

Improved Agriculture: The programme encourages farmers to adopt improved agricultural practises by offering premium discounts to those who take precautions to avoid crop loss.

Promotes Crop Diversification: Because the programme is inclusive of all crops, farmers are encouraged to diversify their crop output and lessen their reliance on a single crop.

Purposes of the Plan

The following goals of the Pradhan Mantri Fasal Bima Yojana:

  • Farmers should be given financial insurance against crop loss due to natural disasters.

  • Support farmers to use cutting-edge techniques to increase crop output.

  • Increase crop insurance coverage to lessen the impact of losses on farmers.

  • Make sure that claims are settled quickly, and shorten the time needed for loss evaluation.

  • Encourage openness in the scheme's execution and guard against fraud and corruption.

  • To help with the creation and planning of policies, provide information on crop losses and agricultural practises.

Implementation of the Plan

The Agriculture Insurance Company of India (AIC) works with numerous insurance firms to implement the Pradhan Mantri Fasal Bima Yojana. The programme is initially conducted as a trial in a few regions, and in succeeding years, the coverage is steadily increased. For farmers who have borrowed money from banks to cultivate their crops, the programme is required; for everyone else, it is optional.

Beginning with the first crop season, farmers must apply for the programme by submitting a crop insurance application form to the relevant insurance provider. Prior to the termination date, and that is often the planting season, the insurance premium must be paid. 

The government sets the premium rates, which are yearly updated depending on the crop's the actuary cost. In the event of crop damage, the insurance company performs a crop-cutting experiment (CCE) to determine the yield loss. The payout is then determined in accordance with the loss of yield and the crop's market price. Within a week of the loss assessment, the payment is immediately credited to the farmer's bank account.


Let's examine some of the issues with and critiques of the Pradhan Mantri Fasal Bima Yojana in more detail.

Limited Coverage

Although the programme covers a large number of farms, very few farmers really benefit from it. A study from India's Comptroller and Auditor General (CAG) claims that just 23% of farmers were protected by the programme in 2016–17. The research also emphasised the low level of enrolment that was caused by the low level of enrollment, inadequate outreach, and lack of faith in the insurance system.

The government must raise awareness of the programme and make sure farmers are aware of its advantages in order to address this problem. The government may spread the word about the programme using a variety of platforms, including farmer gatherings, social media, and meetings at the local level.

Complex Claims Process

Farmers have challenges while making claims and collecting compensation due to the scheme's sometimes convoluted claims settlement procedure. In some cases, farmers had to wait months before receiving compensation, according to the CAG study, which highlighted claim settlement delays.

The government must streamline and increase transparency in the claims settlement process in order to remedy this problem. The government may employ technologies to hasten the claims-settlement procedure and guarantee that farmers get paid on schedule.

Inadequate Compensation

In certain circumstances, the reimbursement offered by the programme is insufficient to compensate farmers for their losses. The amount covered under the plan is determined by the cost of cultivation and the average crop output in the region. But occasionally, the actual yield may be lower than the average yield, leaving farmers with insufficient reimbursement.

The government must adjust the scheme's insured sum to solve this problem and guarantee that farmers receive fair compensation. In order to correctly analyse crop damage and production loss and estimate the appropriate compensation amount, the government can employ remote sensing, satellite photography, and drones.

Unfair Premium Rates

Regardless of the farmers' crop production and amount of risk, all farmers must pay the same flat premium rate under the plan. Due to this, farmers pay unequal premium rates, with high-risk farmers having to pay the same premium as low-risk farmers.

The government must adjust the premium rates to make them more egalitarian in order to address this problem. The government can correctly determine the degree of risk posed by farmers using technology and set premium rates in line with that assessment. High-risk farmers might receive premium subsidies from the government as well, ensuring that they can afford the insurance coverage.

Conclusion

The Pradhan Mantri Fasal Bima Yojana is a significant programme that offers farmers financial assistance in the event that their crops fail due to pests, illnesses, or natural disasters. The programme rewards farmers for implementing improved agricultural practises by providing them with reasonable premiums, prompt claim payment, and other benefits. 

The programme is confronted with a number of issues, including restricted coverage, a difficult claims process, poor payout, and uneven premium prices. To guarantee that the programme helps more farmers and gives them the financial assistance they require to maintain their livelihoods, the government must solve these challenges.

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