When was it started?
The Pradhan Mantri Fasal Bima Yojana (PMFBY), also known as the PM Crop Insurance Scheme, was launched in 2016. As one of the Centre's flagship initiatives, it was designed to revolutionize the agricultural insurance landscape of India and secure farmers against unforeseen climatic events.
Why was it initiated?
Recognizing the vulnerabilities of the Indian farmers to erratic weather patterns and other adversities, the PMFBY was rolled out to mitigate the risks associated with unpredictable climatic conditions. These uncertainties, if not addressed, can adversely affect the crop yield and threaten the financial stability of the farmers.
How is it working?
Fast forward to the Kharif season of 2023, PMFBY boasted coverage of a commendable 30.14 million hectares, indicating a 12% hike from the preceding year. The state of Maharashtra showcased the most substantial growth in this regard, with insured areas practically doubling to 11.4 million hectares, especially after the state government took upon itself the responsibility of the premium's cost. This decision came at a crucial time for Maharashtra, given its 39% below-normal rainfall in August.
However, the efficacy of the scheme largely depends on several variables, the imminent September rains being a vital determinant, especially in light of the August rainfall deficit which stood at a concerning 35% across the nation.
Benefits of PMFBY:
Enhanced Coverage: The scheme has recorded a significant surge in enrollment, particularly among non-loanee farmers. The insured area under this category witnessed a robust growth of 71%, totaling 14.25 million hectares.
Subsidized Premiums: States like Maharashtra have played a pivotal role in maximizing the scheme's reach. The state's decision to subsidize farmers' premiums, effectively limiting enrolment charges to a mere ₹1, has undeniably expanded the coverage.
Financial Stability: PMFBY acts as a protective shield, offering financial stability to farmers who face challenges from climatic adversities such as cyclones and droughts.
Protection against Climatic Anomalies: Given the projection by the India Meteorological Department (IMD) of the rainfall being 91% of the long-period average as of August's end, and the anticipated significance of the September rainfall, PMFBY stands as a crucial defense mechanism against these meteorological variables.
However, the glaring absence of PMFBY in areas like Gujarat, which registered a whopping 90% rainfall deficit in August, underscores the scheme's pivotal role. The impact of Cyclone Biparjoy, followed by extended dry periods, accentuates the pressing need for its broader implementation.
In conclusion, the inception of PMFBY in 2016 marked a transformative moment for agricultural insurance in India. While its foundational importance in defending farmers from climatic adversities remains paramount, its long-term success rests on wider state adoption and adaptability to meteorological predictions.
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