Pradhan Mantri Fasal Bima Yojana Completes Nine Years

IN NEWS: Pradhan Mantri Fasal Bima Yojana Completes Nine Years

ANALYSIS

1. Context

• Pradhan Mantri Fasal Bima Yojana (PMFBY) marks its nine-year completion on 18 February 2025.
• Launched in 2016, aimed at protecting farmers from crop losses arising due to natural calamities.
• PMFBY continues to act as a comprehensive income-stabilisation mechanism for India’s agricultural sector.

2. Cabinet Approval for Continuation

• In January 2025, the Union Cabinetapproved the continuation of:
  • PMFBY
  • Restructured Weather Based Crop Insurance Scheme (RWBCIS)
• Approved period: Up to 2025–26
• Total financial allocation: ₹69,515.71 crore.

3. PMFBY vs RWBCIS

• PMFBY:
  • Based on actual yield assessment.
  • Uses CCEs (Crop Cutting Experiments) for estimating losses.
• RWBCIS:
  • Weather index-based insurance.
  • Compensation is calculated on the basis of weather triggers such as rainfall, temperature, humidity etc.
• Main difference lies in methodology of admissible claim calculation.

4. Technological Interventions

1. Advanced Monitoring Tools:
   • Satellite imagery, drones, UAVs, remote sensing for:
     • Crop area estimation
     • Yield disputes
     • Loss assessment
     • Planned CCE execution
     • Clustering of districts
2. Digital Integration:
   • Yield data captured via CCE-Agri App, uploaded to the National Crop Insurance Portal (NCIP).
   • State land records integrated with NCIP for enhanced transparency.
3. YES-TECH (from Kharif 2023):
   • Technology-based yield estimation system.
   • Blends manual and technology-driven yield data.
   • Aims to reduce reliance on manual CCEs and improve accuracy and timeliness of claim settlement.

5. Key Benefits of PMFBY

1. Affordable Premium Structure:
   • Kharif: 2% of sum insured
   • Rabi: 1.5%
   • Annual commercial/horticultural crops: 5%
   • Remaining premium borne by the Government.
2. Comprehensive Risk Coverage:
   Covers:
   • Natural calamities (drought, floods, cyclones)
   • Pest and disease attacks
   • Post-harvest losses (up to 14 days for crops kept in “cut and spread” condition)
   • Localised calamities (hailstorm, landslide, inundation)
   • Prevented sowing (up to 25% of sum insured)
3. Timely Compensation:
   • Target: Settlement of claims within two months of harvest.
4. Technology-Driven Implementation:
   • Ensures accuracy, accountability and transparency.

6. Strengthening PMFBY

• Multiple reforms since 2016 have improved transparency and timeliness.
• 2023–24:
  • Highest-ever area and farmer coverage.
  • Now the largest crop insurance scheme globally based on farmer applications.
• Several States have waived farmers’ premium share—reducing burden on farmers.

7. Eligibility and Participation

• Scheme is voluntary for all farmers.
• Non-loanee farmers now form 55% of total enrolments (2023–24), indicating high voluntary acceptance.

NECESSARY STATIC PART

1. Pradhan Mantri Fasal Bima Yojana (PMFBY)
   • Objective: Provide financial support for losses to standing crops due to non-preventable natural risks.
   • Implemented by: Ministry of Agriculture & Farmers Welfare.
   • Introduced: 2016.
2. Crop Cutting Experiments (CCEs)
   • Conducted to estimate actual yield of crops in notified insurance units.
   • Required for crop insurance loss computation.
3. National Crop Insurance Portal (NCIP)
   • Digital platform for enrolment, claim processing, CCE data upload and transparency.
4. Weather Based Crop Insurance Scheme (WBCIS / RWBCIS)
   • Uses objective weather parameters for estimating crop losses.

Updated - 17 Feb 2025 ; 07:25 PM | News Source: PIB (https://www.pib.gov.in/PressReleasePage.aspx?PRID=2104175)