Pradhan Mantri Fasal Bima Yojana – A Path Breaking Scheme for Farmers’ Welfare

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved the ‘Pradhan Mantri Fasal Bima Yojana’ – a path breaking scheme for farmers’ welfare.

Hailing the announcement of the Pradhan Mantri Fasal Bima Yojana by the Central Government, Bharatiya Janata Party president Amit Shah on Wednesday said it was for the first time after Independence that the Fasal Bima Yojana had been simplified, and various problems faced by farmers rectified.

“After this scheme, the farmers will be paid speedily using technology. Besides, many new disasters have been included in the disasters’ list,” he said.

“Earlier, there was no provision for compensation for crops destroyed by water-logging in fields and harvested crops destroyed by rain, but now theses have been included,” he said.

“Under the UPA’s capping arrangement, the compensation amount had reduced and premium has gone up from 22-57 percent. The capping has now been removed, and premium has been pegged at 2 percent for kharif and 1.5 percent for rabi and 5 percent for commercial crops. This will enable the farmers to buy crop insurgence at lower premium,” said Shah.

“The financial burden, however, will be borne by both the Centre and the state governments,” he said, adding that under the scheme, the financial burden on the Centre will be five times more than what it was under the previous scheme,” he said.

The Centre has also set up a target to increase coverage from 23 to 50 percent, and using scientific methods, the government wants to take the scheme to reach small land holders.

Key provisions under ‘Pradhan Mantri Fasal Bima Yojana’:

*Crop loss on account of natural calamities covered under the scheme
*One season, one premium
*Online payment in account will eliminate the middlemen
*No cap on premium rate, ensuring full insured amount to the farmers against loss
* Post-harvesting losses included and speedy payment process ensured through new technology

*Use of Remote Sensing, Smart Phones and Drones for quick estimation of crop losses and early settlement of claims.
* Farmers’ share of premium has been substantially reduced – up to 10-fold. The Government will provide subsidy on premium.
* There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
* The scheme will enhance coverage of area under schemes from 23% to 50% of gross cropped area in the next three years. The expenditure is expected to be around Rs 9,500 crore.