Crop Insurance Scheme (PMFBY)
The Context
Prime Minister Crop Insurance Scheme (Pradhan Mantri Fasal Bima Yojana - PMFBY) stands as a pivotal initiative in India's agricultural landscape, aimed at providing comprehensive crop insurance coverage to farmers across the nation. By offering affordable insurance premiums and leveraging digital technology, PMFBY strives to mitigate the risks associated with crop failure and stabilise farmers' income, thereby contributing to the overall growth and sustainability of the agricultural sector. Under this scheme the farmers pay a low premium to get insured for unforeseen natural calamities like drought, floods and pests throughout the cropping season. It uses satellite imaging and various applications to assess crop damage for quicker claim settlement. PMFBY helps farmer stay buoyant during tough times by being inclusive in nature.
Objectives
- To provide a comprehensive insurance cover against crop failure thus helping in stabilising the income of the farmers
- To promote the adoption of innovative practices among farmers.
- To cover all Food & Oilseeds crops and Annual Commercial/Horticultural Crops.
Activities
- Utilisation of improved technology like remote sensing, drones etc. for estimation of yield losses.
- Accelerate service delivery, unify fragmented databases, achieve a single view of data, and eliminate manual processes through web based eco system.
- Enable information access to multiple stakeholders viz. farmers, government functionaries, insurance companies, intermediaries, bankers and social & community bodies.
Key Pre-Requisites
- Development of comprehensive agricultural databases and land records
- Implementation of a robust Crop Cutting Experiment (CCE) methodology for accurate yield estimation
- Integration of digital portals and mobile applications for seamless enrolment
- Collaboration with cooperatives, banks, and insurance providers for beneficiary identification
- Engagement of local administrative bodies for verification and inclusion of marginalized communities
A case study on the impact of PMFBY in Assam, India
In 2019, crop insurance in India achieved significant success with the Pradhan Mantri Fasal Bima Yojana (PMFBY) in Assam, India managed by HDFC ERGO General Insurance Company Limited. Through comprehensive grassroots campaigns and collaboration with local officials, the scheme saw a dramatic increase in farmer enrolment: a 14,256% rise for Kharif sowing and a 2,579% increase for the Rabi season compared to the previous year. The intervention efforts included awareness camps, training sessions, and village meetings, along with extensive promotional materials such as information leaflets, banners, and posters.
From van campaigns and newspaper advertisements increased awareness of the bookstore even further. Such endeavours led to farmer enrolment in Kharif cycle with 93,627 hectares and a total of 1,48,975 farmers and 107,193 farmers with 47,585 hectares for Rabi cycle.
Due to these massive coverage extents, the beneficiaries of the agriculture sectors in Assam were provided with augmented financial stability through the government interventions, proving the need for intensive focused outreach education in government programmes
