Pradhan Mantri Fasal Bima Yojana (PMFBY) UPSC

Pradhan Mantri Fasal Bima Yojana (PMFBY)

When was Pradhan Mantri Fasal Bima Yojana (PMFBY) launched ?

Launched in January 2016

What are the Objectives of Pradhan Mantri Fasal Bima Yojana (PMFBY) ?

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of 

• Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events 

• Stabilizing the income of farmers to ensure their continuance in farming 

• Encouraging farmers to adopt innovative and modern agricultural practices 

• Ensuring flow of credit to the agriculture sector which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

What are the premiums of farmers ?

- For rabi crops 1.5% of Sum Insured

- For kharif crops 2% of Sum Insured

- For horticultural and commercial crops 5% of Sum Insured

Which type of farmers are covered in Pradhan Mantri Fasal Bima Yojana (PMFBY) ?

All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. However, farmers should have insurable interest for the notified/insured crops .

All farmers who have been sanctioned Seasonal Agricultural Operations (SAO) loans from Financial Institutions (FIs) (i.e. loanee farmers) for the notified crop(s) season would be covered compulsorily. The Scheme is optional for non-loanee farmers.

What are the risks covered under the scheme ?

- Insured area is prevented from sowing/ planting/germination due to deficit rainfall or adverse seasonal/weather conditions.

- Standing Crop (Sowing to Harvesting): 

Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spell, Flood, Inundation, widespread Pests and Disease attack, Landslides, Fire due to natural causes ,Lightening, Storm, Hailstorm and Cyclone.

- Post-Harvest Losses: 

Coverage is available only upto a maximum period of two weeks from harvesting, for those crops which are requiredto be dried in cut and spread / small bundled condition in the field after harvesting against specific perils of Hailstorm, Cyclone, Cyclonic rains and Unseasonal rains

- Localized Calamities:

Loss/damage to notified insured crops resulting from occurrence of identified localized risks of Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightening affecting isolated farms in the notified area.