Agriculture World

Pradhan Mantri Fasal Bima Yojana: Cabinet Makes Crop Cover Voluntary for Farmers


Centre has approved important changes in the Pradhan Mantri Fasal Bima Yojana or PMFBY making it voluntary for cultivators with a view to plug loophole in the crop insurance scheme.

Under the PMFBY that was launched in 2016 by PM Narendra Modi, it is compulsory for loanee farmers to take an insurance cover under this scheme.

At present, 58% of the total farmers are loanee.

Agriculture Minister Narendra Singh Tomar said that the Union Cabinet has approved many changes in the Pradhan Mantri Fasal Bima Yojana as states and farmers' body were raising some concerns. Tomar said the insurance scheme has now been made optional for farmers.

Highlighting the achievements of PMFBY, the agriculture minister said the insurance programme has covered 30% of cultivable area. Tomar said insurance claims worth Rs. 60,000 crore have been cleared and Rs 13,000 crore premiums have been collected.

He further told that the government will launch a campaign in order to create awareness among cultivators about the need to take a crop insurance policy.

An official statement said that "Central share in the premium subsidy will be increased to 90% for the north eastern states from the existing sharing pattern of 50:50 (Both PMFBY/RWBCIS)".  

The statement also said that "With these changes, it is expected that growers will be able to manage the risks in agriculture production in a better way & will succeed in stabilizing the farm income. These changes will also enable quick & correct yield estimation leading to faster claims settlement".  

To recall, Pradhan Mantri Fasal Bima Yojana offers comprehensive crop insurance right from pre-sowing till post-harvest period against non-preventable natural risks/dangers at very low premium rate of 2% for kharif crops, 1.5% for rabi crops and 5% for horticulture & commercial crops.

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