Pradhan Mantri Fasal Bima Yojana: Crops Covered under PMFBY and How to Apply

Agriculture is the backbone of India’s economy, making up more than 30 percent of the country’s GDP. Yet, despite its importance, farmers in India face numerous challenges, such as unpredictable weather and market fluctuations that threaten their livelihoods. To help address these issues, the Indian government launched Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.

Pradhan Mantri Fasal Bima Yojana

What is the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

It is a government-sponsored crop insurance scheme launched in India in 2016. The scheme aims to financially protect farmers against crop loss due to pests, diseases, and natural calamities. It also covers post-harvest losses.
The scheme is voluntary for all farmers except those who take loans from banks or financial institutions for their agricultural activities.

How Will the PMFBY Help Farmers in India?

Under the scheme, farmers are provided with crop insurance against the risk of crop loss due to natural calamities such as floods, drought, and hailstorms. The scheme also covers post-harvest risks such as storage and transport losses. Farmers can avail of this insurance by paying a premium of 2% for kharif crops and 1.5% for rabi crops. The government pays the remaining premium amount. In case of crop loss, farmers are compensated up to 75% of the sum insured.
Pradhan Mantri Fasal Bima Yojana (PMFBY) is an important initiative of the Government of India and has become increasingly popular. By providing farmers with insurance protection against losses due to natural calamities, PMFBY has ensured that those affected by such incidents can get timely financial assistance and rest assured knowing that their crops are protected. The various benefits associated with this scheme have convinced several state governments to adopt PMFBY to ensure the welfare of Indian farmers.

Objectives of Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme of the Government of India to provide financial support to farmers in case of crop loss due to pests, diseases, and natural calamities. The scheme aims to provide comprehensive risk coverage for all farmers, regardless of size and location. The scheme covers post-harvest losses not covered under other insurance schemes.

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Crops and Areas Covered by PMFBY

Rabi Crops: Wheat, Barley, Oats, Rye, Gram, Peas, Lentils, Oilseeds
Kharif Crops: Rice, Maize, Sorghum (Jowar), Finger Millet (Ragi), Pearl Millet (Bajra), Small Millets, Soybean, Groundnut, Tur, Moong/Urad, Cotton
Commercial & Horticultural Crops: Any notified crop grown on more than 10 hectares can be covered under this scheme. This includes sugarcane and potato for commercial purposes and Mango, Orange, and Papaya for horticulture purposes.

Notified areas Covered by PMFBY: The PMFBY is currently operational in all states and union territories of India except for West Bengal.

Who Can be Covered in this PMFBY?

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government crop insurance scheme program that covers eligible farmers in India. The program is designed to financially protect farmers from crop loss due to natural calamities, pests, or diseases. Eligible farmers include those who grow food grains, oilseeds, and pulses on at least one hectare of land.

They must also be enrolled in the PMFBY by their respective state governments. In the event of crop loss, farmers are entitled to receive an insurance payout equal to the value of their lost crops. The maximum insurance payout per hectare is Rs. 20,000. The PMFBY is currently operational in all states and union territories of India. To be eligible for the PMFBY:

The applicant must have a valid bank account and have cultivated land for at least one year. They must also be registered with the local agricultural department.
The scheme is voluntary for all farmers except those who take loans from banks or financial institutions for their agricultural activities.
The scheme covers all small and marginal farmers who take loans to grow crops. The scheme financially supports farmers in crop loss due to natural calamities, pests, and diseases.
Be registered with the Agricultural Insurance Company (AIC) of India Ltd.
They have a loan account with a bank or financial institution.
Be growing an insurable crop in an insured area.

Coverage of Risks and Exclusions Under PMFBY Scheme

The PMFBY scheme covers all risks beyond farmers’ control, including floods, droughts, unseasonal rains, hailstorms, cyclones, and landslides. However, some risks and exclusions are not covered under the scheme. These include:

Losses due to wilful damage or negligence of the farmer
Losses due to storage or transportation problems
Post-harvest losses
Losses caused by war or nuclear accidents
Crop losses due to changes in weather patterns that are not considered natural calamities

The Main Benefits of the PMFBY

The scheme covers all production risks, including yield losses due to weather conditions like drought, flood, cyclone, and unseasonal rains. It also covers post-harvest losses due to storage or transportation problems. In crop loss, the farmer will receive an insurance claim based on the sum insured and the type of crop insurance policy taken.
The scheme provides financial protection to farmers against crop losses due to natural calamities. This helps reduce the burden on farmers in case of crop loss and ensures that they can continue farming despite setbacks.
The scheme makes it easy for farmers to access crop insurance policies. They can choose from various insurance companies and policies that suit their needs.
The government subsidizes the premiums under the PMFBY, making them affordable for farmers.

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How to Apply for the PMFBY?

To apply for the Pradhan Mantri Fasal Bima Yojana (PMFBY), farmers need to approach the nearest office of the State implementing agency or any other implementing agency.
The farmer will be given an application form, which they must fill in and submit along with the required documents.
These documents usually include proof of identity, address, and bank account details. The farmer may also be required to submit evidence of land ownership.
Once the farmer has submitted all the necessary documents, they will be registered under the scheme and eligible for crop insurance coverage.

Conclusion

PMFBY is a crop insurance scheme that helps farmers protect themselves against financial losses due to natural disasters or market volatility. It is a comprehensive crop insurance scheme that provides financial protection to farmers from losses caused by drought and other natural disasters. It covers all stages of farming, from land preparation to harvesting.

Pradhan Mantri Fasal Bima Yojana: Crops Covered under PMFBY and How to Apply