The insured gross cropped area of non-loanee farmers enrolled in the Pradhan Mantri Fasal Bima Yojana (PMFBY) has achieved a record high, signaling a significant increase in the acceptance of the Centre’s initiatives. crop insurance scheme.
Growing Trend
Data from the Ministry of Agriculture and Farmers’ Welfare reveals a significant uptick in the non-loanee area, reaching 180 lakh hectares during the 2022-23 crop year under the PMFBY. This marks a remarkable 70% increase compared to the previous year’s 106 lakh hectares.
Shifting Dynamics
In the latest crop year, the insured non-loanee area comprised 36.07% of the total insured area under the PMFBY, the highest in five years. Over the past five years, the proportion of non-loanee area has fluctuated but maintained a steady rise, showcasing increased interest and participation.
Changing Landscape
Conversely, the loanee area has witnessed a decline, dropping from 444 lakh hectares in 2019-20 to 320 lakh hectares in 2022-23. This shift can be attributed to the scheme’s transition from mandatory to voluntary participation for loanee farmers, beginning with the 2020 Kharif season.
Scheme Enhancements
Initially, the PMFBY mandated participation for loanee farmers, but subsequent revisions allowed for voluntary enrollment. The government introduced changes in operational guidelines in 2020, further streamlining the scheme’s implementation and accessibility.
Premium Structure
Farmers participating in the PMFBY are required to pay premiums based on the sum insured or actuarial rates. The rates vary from 2% for Kharif food and oilseeds crops, 1.5% for Rabi crops, to 5% for annual commercial/horticultural crops. Some states like Assam, Andhra Pradesh, and Maharashtra cover farmers’ premiums, making insurance effectively free for them.
Scope and Reach
The PMFBY continues to expand its coverage, with 20 states and Union Territories implementing the scheme across 411 districts in Kharif 2023. It encompasses 29 agricultural crops and 59 horticultural crops, offering comprehensive protection to farmers.
Expert Insights
According to Rajeev Chaudhary, former CMD of Agriculture Insurance Company of India Limited, the rise in non-loanee participation underscores the scheme’s broad acceptance. The highly subsidized premiums and tangible benefits have contributed to its popularity among farmers.
Conclusion
The increase in participation of non-loanee farmers in the PMFBY reflects a rising confidence in the scheme’s effectiveness and its benefits for farmers throughout India.
