Crop Insurance schemes in India: Need, Importance and Benefits to Farmers

Sangeeta Soni
Sangeeta Soni

Everybody knows about Insurance, we common people know that there is no certainty of life, anything can happen at any phase of life, that’s why for the safety, we rely on insurance. There are many types of insurance, health insurance, travel insurance, life insurance, and many more.   

But what about Crop Insurance? Yes, Crop Insurance. For farmers, this is equally important just like any other insurance. The crop which you cultivate with all your efforts, money, and for which you give your almost everything, is also important.   


What if your crop gets damaged due to any reason? Who will be answerable? Who will give its return? Who will help you after that? Really important to think. Right…!!  

For this reason, the Government came up with a Crop Insurance scheme years ago and is improving policies till date. But still, many farmers are not taking advantage of Crop Insurance. Let’s understand its importance and how crop insurance can benefit you.   

The need for Crop Insurance  

Majorly, Natural disasters affect poor farmers in developing countries. And crop insurance protects farmers against the loss of crops as a result of any natural calamity, extreme weather, or loss of revenue due to fluctuations in price in the agricultural market. By this, a man who struggles using his plough will be assured that at least, he will get some return after any calamity.   

Advantages of Crop Insurance   

  1. Income stability 

It protects farmers against losses due to the failure of the crop. It is a kind of resource that helps farmers to handle their yield and price risks.  

  1. Minimum debts  - Even during crop failure, farmers will be in the condition to repay their loans with the help of crop insurance.  
  1. Technological advancement  - Insurance companies also provide knowledge about how the losses can be minimized, which can help farmers. And the use of IoT can also support in technological advancement.  
  1. New agricultural practices  - By protecting against loss, Crop insurance assures economic interest. And farmers can adopt new agricultural practices in return to this and can try new measures to protect their crops.  

Crop insurance schemes in India

The government has implemented four insurance schemes to support farmers and they are as follows;

  • Pradhan Mantri Fasal Bima Yojana (PMFBY)
  • Weather-based Crop Insurance Scheme (WBCIS)
  • Pilot Unified Package insurance scheme (UPIS)
  • Coconut Palm insurance scheme (CPIS)

This is all about Crop Insurance. Along with this, one more thing is good to know that, there are various types of crop insurance such as Crop-hail insurance, Multiple peril crop insurance, Yield-based, and revenue-based crop insurance. So, you can choose as per your need.    

In a series of articles, we will cover up all the aspects of Crop Insurance in India, its importance, and why the farmers need to understand it for their financial security.

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