Union Ministry of Agriculture and Farmers Welfare is open to taking pro-farmer changes in Pradhan Mantri Fasal Bima Yojana (PMFBY) in response to the recent climate crisis and rapid technological advances.
- Secretary, Agriculture and Farmers Welfare, said, since farming is exposed directly to such climatic catastrophes, it is important and critical to protect the vulnerable farming community of the country from the vagaries of nature.
PMFBY is relevant
- World Economic Forum’s Global Risk Report 2022 categorise Extreme Weather Risk as 2nd largest risk over next 10 years period and such sudden shifts in weather patterns are capable of adversely impacting our country, where the responsibility to feed world’s 2nd highest population lies solely on the shoulders of the agriculture community.
- It therefore becomes imminent to provide a safety net to the farmers to protect their financial position and encourage them to continue farming and ensue food security for not only the country but for the world as well.
New fundamental features added to PMFBY
- After the introduction of PMFBY in 2016, the scheme brought in comprehensive coverage of all the crops and perils, from the pre-sowing to post harvest period which was not included in previous schemes of National Agricultural Insurance Scheme(NAIS) and Modified NAIS.
- Several new fundamental features were also added during its revision in 2018, such as increasing the crop loss intimation period for farmers from 48 hours to 72 hours, keeping in mind that damage signatures disappear or are lost in case of localized calamities after 72 hours.
- Similarly, post its revamp in 2020, the scheme added voluntary enrolment and inclusion of add on cover for wildlife attack, to make the scheme even more farmer friendly.
- Recently introduced Weather Information and Network Data Systems (WINDS), Yield Estimation System based on Technology (YES-Tech), Collection of Real Time Observations and Photographs of Crops (CROPIC) are some of the key steps taken under the scheme to bring in more efficiency and transparency.
- To address farmer grievances in real time, an integrated help line system is under beta testing in Chhattisgarh.
Concerns
- Some States have opted out of the Scheme primarily due to inability to pay their state share of premium subsidy due to financial constraints.
- Most of the States have opted for Compensation Models in place of PMFBY, that do not provide same comprehensive risk coverage to farmers as PMFBY.
- In the last 6 years, only Rs 25,186 crores have been paid by farmers wherein Rs 1,25,662 crores have been paid to the farmers against their claims, with Central and State Governments bearing most of the premium under the scheme.
About PMFBY
- PMFBY is currently the largest crop insurance scheme in the world in terms of farmer enrolments, averaging 5.5 crore applications every year and third largest in terms of premium received.
- The scheme promises minimal financial burden on the farmer, with farmers paying only 1.5% and 2% of total premium for Rabi and Kharif season, respectively, with Centre and State Governments bearing most of the premium.
