PMFBY: 27 Lakh Farmers in UP Receive Compensation of Rs. 3,000 Crore

A compensation of Rs 3074.6 crore has been deposited in the accounts of 27.59 lakh farmers in Uttar Pradesh as part of the Pradhan Mantri Fasal Bima Yojana in an effort to increase farmers' income and guarantee the protection of their crops.

Farmers have embraced the PM Fasal Bima Yojana, a scheme that insures them in the event that their crops fail due to pests, diseases, or natural catastrophes, in large numbers across the nation. From Kharif 2016 to Kharif 2021, every year, over 5.5 crore farmers from all over the nation sought for crop insurance through the Fasal Bima Yojana. Over 21 thousand crores in premiums have been collected, and farmers have received over 1.15 lakh crore in payments as insurance claims.

Launched in 2016–17, PMFBY is the third-biggest crop insurance scheme in terms of premiums paid and the largest crop insurance scheme in terms of farmer participation globally.

According to the scheme, farmers must pay a consistent premium of just 2 percent for all Kharif crops and 1.5 percent for all Rabi crops. The premium that must be paid in the case of yearly commercial and horticultural crops is merely 5%. The farmers have benefited greatly from this initiative. In all of the districts of Uttar Pradesh, Chief Minister Yogi Adityanath has put this central government scheme into effect at the gram panchayat level.

Farmers who undertake agriculture while taking out loans are compulsorily included in this scheme. The majority of farmers have chosen to get insurance.

A spokesman for the UP government claims that during the Yogi administration, 281.25 lakh farmers received crop insurance, with 27.59 lakh farmers receiving compensation of Rs. 3074.60 crore. This also includes the payout of Rs 654.85 crore in crop compensation to 7.02 lakh farmers during the Kharif season of 2021. 19.90 lakh farmers have insured 14.21 lakh hectares for Rabi 2021–2022. He stated that the procedure of compensation was currently underway.

From the Kharif 2016 season onward, this scheme was started in India by the Ministry of Agriculture & Farmers Welfare. Since Rabi 2016, National Insurance Company has taken part in PMFBY.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to support agricultural production that is sustainable by giving financial aid to farmers who have experienced crop loss or damage due to unforeseeable circumstances, stabilising their income from farming, and encouraging them to use new and cutting-edge agricultural techniques. The programme also attempts to shield farmers from production risks while ensuring a flow of finance to the agriculture sector, which promotes food security, crop diversification, and industry growth and competitiveness.

All farmers who had been approved for Seasonal Agricultural Operations (SAO) loans from financial institutions for the declared crop season would automatically be covered. For farmers who do not have loans, the scheme is optional. The insurance coverage is equal to the sum insured per hectare, as stated in the official announcement or on the National Crop Insurance Portal, times the area seeded for the designated crop.