The future of agriculture in India often depends on the vagaries of the weather. When crops are destroyed by drought, floods, hailstorms, or other natural disasters, farmers suffer huge financial losses. To address this pressing problem, the central government launched the revolutionary Pradhan Mantri Fasal Bima Yojana (PMFBY) in April 2016. This scheme provides farmers with a powerful shield to provide financial security and strong stability in the event of crop loss.
Its primary objective is to protect farmers from losses caused by natural disasters by providing affordable crop insurance. This scheme not only compensates farmers but also encourages them to adopt better seeds, fertilizers, and modern farming methods, significantly increasing their income and self-reliance.
Low Premiums, Large Coverage
The most unique feature of the Pradhan Mantri Fasal Bima Yojana is its low premiums and large insurance coverage. Farmers pay a very low premium for insurance, while the remaining expenses are borne jointly by the central and state governments, meaning farmers receive complete protection at a very low cost.
Premium and Government Subsidy
Farmers are required to pay only a 2% premium for Kharif crops, while for Rabi crops, the rate is 1.5%. The premium rate for commercial or horticultural crops is fixed at 5%. This minimum premium rate is a major relief for farmers. There is no upper limit on the government subsidy; even if the remaining premium is up to 90%, it is fully borne by the government.
Relief in Local and Post-Harvest Disasters
This scheme also provides compensation on an individual basis for local disasters. This means that if only one field is damaged by a local disaster such as a hailstorm, landslide, lightning, or waterlogging, the farmer will receive compensation. Furthermore, protection is also provided after the harvest.
If the harvested and dried crop (which has been lying in the field for 14 days in ‘cut and spread’ condition) is destroyed by unseasonal rain or cyclone, the farmer receives insurance benefits. Even if sowing is not completed due to adverse weather, farmers are provided insurance cover of up to 25% of the insured amount.
Who can avail the benefits of PMFBY?
Certain eligibility criteria have been set to avail the benefits of the Pradhan Mantri Fasal Bima Yojana. Farmers with a savings account between the ages of 18 and 70 can join this scheme. To avail the benefits of this scheme, farmers must grow specified crops in a government-notified area.
Farmers who cultivate their own land or lease land are also fully eligible. It is essential to have valid land documents and a bank account. To ensure your crops are protected, it is essential to apply for insurance on time.
Documents Required for Application
When applying for the crop insurance scheme, farmers must submit basic documents such as an Aadhaar card, PAN card, voter ID or driving license, address proof, passport-size photo, and bank account number (bank passbook) as proof of identity. Additionally, the land’s Khasra number, land ownership or lease agreement (if the land is rented), and a crop declaration form (detailing the crop sown) are also mandatory.
How to Apply
Farmers can apply online by visiting the official PMFBY website (pmfby.gov.in). Registration is done by going to the “Farmers Corner” section on the website and selecting the “Guest Farmer” option. The application form is submitted by uploading all the required information and documents. If you prefer not to apply online, you can also apply offline by visiting your nearest bank or agriculture department office.
What is covered under crop insurance
The Pradhan Mantri Fasal Bima Yojana provides farmers with robust protection against a variety of risks. This scheme fully covers losses caused by natural disasters such as drought, floods, cyclones, hailstorms, etc. It also provides financial assistance for crop losses caused by pests, diseases, or unusual weather. Farmers are provided relief in all three situations: mid-season disasters, large-scale natural calamities, and localized disasters.