PMFBY: Centre Allocates Rs. 16000 Crore for Pradhan Mantri Fasal Bima Yojana for FY 2021-22

Union government has allocated Rs.16,000 crores for Pradhan Mantri Fasal Bima Yojana (PMFBY) for the fiscal year 2021-22 after the announcement made by Nirmala Sitharaman to boost the safety of farmers' crops and to ensure that maximum benefit of crop insurance reaches farmers. 

"This is a budgetary increase of around Rs. 305 crore as against the previous fiscal year 2020-21, which reiterates the government's commitment towards the growth of agriculture sector in the country," said Union Ministry of Agriculture and Farmers Welfare in a press statement. 

As per reports, the government has decided to extend the coverage of Pradhan Mantri Fasal Bima Yojana for the entire cropping cycle from pre-sowing to post-harvest including coverage for losses arising out of prevented sowing and mid-season adversities. 

The Government of India approved this flagship crop insurance scheme five years ago, on January 13, 2016. The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers. 

As per reports, PMFBY is globally the largest crop insurance scheme in terms of farmer participation and 3rd largest in terms of premium. Over 5.5 crore farmer applications are received on year-on-year basis, the statement read. 

The Ministry of Agriculture and Farmers Welfare has worked extensively over the past 5 years towards revamping the Pradhan Mantri Fasa Bima Yojana (PMFBY) scheme by relooking at the structural, logistical, and other challenges. 

The scheme was made voluntary for farmers post its revamp in 2020. 

According to the statement, the scheme has made it easier for the farmer to report crop loss within 72 hours of the occurrence of any event through the Crop Insurance App, Common Service Centers or the nearest agriculture officer. Claim benefit is then provided electronically into the bank accounts of eligible farmers.