Pradhan Mantri Fasal Bima Yojana crop insurance record

Why in the News

PIB set out the coverage and claims record of the Pradhan Mantri Fasal Bima Yojana (PMFBY). PMFBY is the national crop insurance scheme.

Core facts

1. What it is: PMFBY provides crop insurance against non preventable natural risks. Cover runs from pre sowing to post harvest.
2. Coverage record: About 56.96 crore farmer applications were insured since inception.
3. Claims paid: About Rs 1,54,469 crore was paid in claims since inception.
4. Farmer premium: Farmers pay 2 percent for Kharif crops, 1.5 percent for Rabi crops and 5 percent for commercial and horticultural crops. The government pays the balance premium.
5. Design principle: The scheme follows a One Nation, One Crop, One Premium approach. It removed premium capping so full admissible claims are paid.
6. Technology: Loss assessment uses remote sensing, drones and smartphones. Key systems are YES-TECH (Yield Estimation System based on Technology) and CROPIC (Collection of Real time Observations and Photographs of Crops).

Static Context

1. Launch: PMFBY was launched in 2016. It replaced earlier crop insurance schemes.
2. Voluntary since 2020: Enrolment became voluntary for all farmers from the 2020 revamp. It was earlier compulsory for loanee farmers.
3. Delivery platform: The National Crop Insurance Portal (NCIP) digitises enrolment, premium flow and claims.
4. Implementing ministry: The scheme is run by the Ministry of Agriculture and Farmers Welfare.

Prelims angle

1. Premium hook: Farmer premium is 2 percent Kharif, 1.5 percent Rabi, 5 percent commercial and horticultural. A uniform 2 percent for all crops is incorrect.
2. Scope hook: The scheme covers post harvest losses from cyclones and unseasonal rain, and localised risks such as hailstorm and landslide.
3. Tech hook: YES-TECH for yield estimation and CROPIC for photograph based crop verification.
4. Year hook: Launched in 2016, voluntary since 2020.

Mains angle

GS3 (agricultural risk, crop insurance, subsidies). A question can ask how crop insurance protects small and marginal farmers against climate risk.

Matching Previous Year Question

“[2016, GS3, 12.5 marks] Give the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). [2016] With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year. 2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer: (b)”