Overview: The Pradhan Mantri Fasal Bima Yojana (PMFBY), India’s central sector scheme for agricultural insurance, has seen a substantial 27% increase in farmer enrollments in the financial year 2023-24, with 56.80 crore farmers now covered under the scheme. The scheme has also paid out claims to over 23.22 crore participants, highlighting its extensive reach and impact.
Growth and Payouts:
- Enrollment and Claims Growth: There has been a year-on-year increase in applications of 33.4% and 41% during 2021-22 and 2022-23 respectively.
- Premiums vs. Claims: Since its inception in 2016, farmers have contributed approximately Rs 31,139 crore in premiums. In return, they have received claims worth over Rs 1,55,977 crore, indicating a robust return on their investments in the scheme.
- Non-loanee Farmer Participation: The FY 2023-24 has particularly noted that over 42% of the insured farmers are non-loanee farmers, showcasing the voluntary appeal of the scheme.
About PMFBY:
- Launch and Rank: Initiated in 2016 by the Ministry of Agriculture & Farmers Welfare, PMFBY stands as the world’s third-largest agricultural insurance scheme based on premium volume.
- Voluntary Participation: Originally mandatory for loanee farmers taking crop loans, it was made voluntary in 2020, widening its accessibility.
- Premium Rates: The scheme charges maximal premium rates of 2% for Kharif, 1.5% for Rabi food and oilseed crops, and 5% for annual commercial or horticultural crops.
Government Initiatives to Enhance PMFBY:
- Operational Guidelines: Periodic revisions ensure that benefits are delivered timely and transparently to farmers.
- Technological Advancements: Implementation improvements include:
- A three-year tenure for insurance company selection via bidding to ensure stability and consistency.
- Deployment of technologies such as the National Crop Insurance Portal (NCIP), Yield Estimation System based on Technology (YES-TECH), and Weather Information Network and Data Systems (WINDS) among others to enhance accuracy and reliability of crop insurance data.
Conclusion: The PMFBY’s continued adaptation and enhancement have significantly contributed to its success in providing financial support and stabilizing the incomes of farmers, especially during adverse natural events. The increase in enrollments and the high volume of claims processed reflect the scheme’s effectiveness and essential role in India’s agricultural welfare initiatives.
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