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Budget 2020: FM Sitharaman says 6.11 crore farmers covered under Pradhan Mantri Fasal Bima Yojana so far

The Fasal Bima Yojana is a major initiative aimed at farmers' crop security against natural calamities at the time of sowing.

February 01, 2020 / 11:45 AM IST

Finance minister Nirmala Sitharaman on February 1, said the government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY) since it was first launched in early 2016.

The schemes allows farmers to pay nominal premiums and receive full claim for the crop damage.

PMFBY was launched in 2016 after rolling back its earlier schemes, the National Agriculture Insurance Scheme (NAIS), the Weather-based Crop Insurance scheme, and the Modified National Agricultural Insurance Scheme (MNAIS).

The Agriculture Ministry has migrated from administered premium and claim-support insurance schemes to an upfront subsidy for actuarial premium- based system. The part liability of claims of previous years (prominently Kharif 2015 and Rabi 2015-16) have also to be paid along with the upfront premium subsidy under PMFBY for Kharif and Rabi 2018-19.

PMFBY is a demand driven scheme, and therefore, no targets are fixed. However, it was decided to increase the coverage up to 50 percent of the total cropped area.

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The crop insurance scheme aims to support sustainable production in agriculture by providing financial support to farmers suffering crop damage or loss arising out of unforeseen events. The scheme was launched on April 1, 2016 to ensure the flow of credit to the agriculture sector, which will in -turn contribute to food security, crop diversification.

The Fasal Bima Yojana is a major initiative aimed at farmers' crop security against natural calamities at the time of sowing.

 
Moneycontrol News
first published: Jan 27, 2020 03:09 pm

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