(The Gist of PIB) PMFBY completes five years

(THE GIST OF PIB) PMFBY completes five years


PMFBY completes five years

  • Crop insurance scheme The Pradhan Mantri Fasal Bima Yojana (PMFBY) successfully completes 5 Years of operations on 13th January 2021.
  • Key achievements:
  • Average sum insured per hectare has increased from Rs. 15,100 during pre-PMFBY Schemes to Rs. 40,700 under PMFBY.
  • Scheme covers over 5.5 crore farmer applications year on year. Till date, claims worth Rs 90,000 crores have already been paid out.
  • Even during COVID lock down period nearly 70 lakh farmers benefitted.
  • PMFBY provides comprehensive crop insurance from pre-sowing to post-harvest period against non-preventable natural risks at a premium rate of 2% for kharif crops, 1.5% for rabi crops, 5% for horticulture and commercial crops.
  • Intended beneficiary: All farmers including sharecroppers and tenant farmers growing notified crops in a notified area (unit of insurance decided by state government).
  • Earlier this year, PMFBY was revamped to address existing challenges in their implementation.
  • Reforms include:
  • Making enrolment voluntary for all farmers. Earlier insurance was mandatory for loanee farmers.
  • Slashing central share of premium subsidy from 50% to 25% in irrigated areas and 30% for unirrigated areas.
  • Districts having 50% or more irrigated area will be considered as irrigated area/district.



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Courtesy: PIB