India is an agriculture-based nation and the majority of the income for India comes from the Agricultural sector. Despite this, there were no provisions for crop insurance earlier and every year, the farmers lost a huge amount because of crop spoilage. The present government was determined to resolve this issue and mitigate the risk. To deal with the issue, the government of India launched Pradhan Mantri Fasal Bima Yojana. In this article, we have listed all the information about Pradhan Mantri Fasal Bima Yojana
What is Pradhan Mantri Fasal Bima Yojana?
The scheme was launched by the government to provide the crop insurance to Indian farmers for Kharif and Rabi Crop and this year, the allocated budget for the Fasal Bima Yojana stands at Rs 5500 crores. The scheme is applicable in all the Indian states and the best part of the scheme is that it offers the insurance at a very low premium. This enables the farmer to cover up for losses easily.
How will the scheme work?
As per the information available, the government has set the premium of the insurance between 1.5% to 2% of the crop value for all the crops except for the commercial and horticulture crops. For horticulture and commercial crops, the premium amount stands at 5% of the crop value. Hence the farmers can avail the insurance based on the crop they are growing. The insurance pays off at the time of crop spoilage and in such a case, the insurance ensures that the farmer is able to pay back the loan and sow new crop for the next season. The scheme also ensures that the farmer doesn’t get stuck in the debt circle because of the loss of crop.
Eligibility criteria for the Fasal Bima Yojana?
The eligibility criteria for the scheme is mentioned below
- The scheme is applicable only for Indian farmers who are harvesting Ravi, Kharif, Commercial or Horticultural crop.
- The farmer also needs to pay the premium on time and he should also notify the local authorities about the crop. The authorities would then approve the crop based on the climate and the land profile of that area.
- If the farmer has a crop loan account then the farmer is automatically eligible to avail the benefits of the scheme.
- The insurance covers any damage that occurs because of fire, drought, flood, storm, and
- It should also be noted that the scheme doesn’t cover the risk of crop damage due to war, riots, theft or animal grazing.
How to apply for the Fasal Bima Yojana?
Here is the procedure to apply for the scheme
- To apply for the scheme, you can visit the link mentioned below
- You can then click on a farmer from the top menu and enter your mobile number and the OTP that you receive on the mobile.
- Proceed further by filling the personal details, bank details, and other details and click on the continue button.
- You will now have to enter the details of the land and after entering the details, proceed to the premium payment.
- You will now receive a tracking number for your future reference.
What are the benefits of the Fasal Bima Yojana?
Some of the benefits of the scheme are listed below –
- This is the first time when the government is providing crop insurance at such a low premium and hence the people would be encouraged to take up the crop insurance.
- The scheme certainly mitigates the risk for the farmers and it would ensure that the farmer doesn’t run into losses because of crop spoilage.
- This scheme could help the country in reducing the cases of farmer suicide as the farmers would not be trapped in debt circle.
- The scheme also has a high level of transparency and the benefits are delivered directly to the farmers which eliminate the space for corruption at any level.
You may also like to read – Pradhan Mantri Gram Sadak Yojana
Who will back the plan?
The plan is being backed by the central government but the Ministry of Agriculture and Farmer Welfare is also participating in the scheme to make it a success and help the citizen of the nation.
Details of the Scheme
Name of the Scheme – Pradhan Mantri Fasal Bima Yojana
Budget– Rs 13240 Crore
Scheme Launched by – Prime Minister Narendra Modi
Is this the way forward for the nation?
India had been dealing with issues like farmer suicide for a long time but this scheme has the power to eliminate such issues from the root. In addition to this, the scheme can change the scenario in the agricultural market in India by helping farmers in coming out of the debt trap. The government should certainly launch more such schemes.