Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched on 18th February 2016 with the objective to support sustainable production in the agriculture sector. The scheme aims to provide compensation to farmers suffering crop damage or loss arising out of unforeseen events, stabilize farmer’s income, encourage them to adopt innovative and modern agricultural practices, ensure the flow of credit to the agriculture sector, and protect farmers from production risks.

Scheme Overview

• Scheme Name: Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Scheme Modified: The scheme was implemented on 18th February 2016 and was modified on 13th January 2020.
• Scheme Fund Allocated: Rs. 15,500 crores for the financial year 2022-23.
• Type of Government Scheme: Central Government Scheme.
• Sponsored / Sector Scheme: Sponsored by the central government.
• Website to apply: http://agricoop.gov.in/
• Helpline No.: 1800-11-5526.

Features of Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana provides financial support to farmers in case of damage to their crops due to natural calamities, pests and diseases. The scheme covers all food crops, oilseeds and annual commercial or horticultural crops. The following are the features of the scheme:

• The scheme is voluntary for non-loanee farmers, and it is compulsory for all farmers availing of Seasonal Agricultural Operations (SAO) loans from financial institutions.
• The scheme provides comprehensive risk insurance for standing crops from sowing to harvesting, including drought, dry spells, flood, inundation, pests and diseases, landslides, natural fire, lightning, storm, hailstorm, cyclone, typhoons, tempests, hurricanes, tornados.
• The scheme provides coverage for prevented sowing, localized calamities, and post-harvest losses. It protects farmers from financial losses when they cannot plant their crops due to uncontrollable factors. Prevented sowing coverage is available if purchased before the planting deadline established by the insurer. If the prevented sowing conditions are covered, the farmer will be reimbursed for the costs of preparing the land and purchasing inputs. However, the farmer will not receive compensation for the expected yield or revenue that would have been generated from the crop since it was not planted. 
• The scheme also includes special efforts to ensure the maximum coverage of SC/ST/women farmers under the scheme.

The following table provides a brief summary of the scheme’s features:

Benefits of the scheme

• The scheme aims to support sustainable production in the agriculture sector by providing compensation to farmers suffering crop loss or damage caused by unforeseen events.
• The scheme stabilizes the income of farmers to ensure their continuance in farming.
• The scheme encourages farmers to adopt innovative and modern agricultural practices.
• The scheme ensures the credit flow to the agriculture sector, attributing to food security, diversification of crop and enhancing the growth and competitiveness of the agriculture sector.

Drawback 

The scheme has faced criticism for not being useful to all farmers, especially those who belong to certain segments. The non-loanee farmers are eligible to get the coverage, but they are required to submit necessary documentary evidence of land records prevailing in the state (Records of Right (RoR), Land Possession Certificate (LPC), etc.) and applicable contract/agreement details (in case of sharecroppers/tenant farmers). It may not be possible for some farmers to fulfill these requirements.

How to Apply?     

Here are the step-by-step instructions for the application process for PMFBY:

• Step 1: Visit the official website of the Department of Agriculture, Cooperation and Farmers Welfare at http://agricoop.gov.in/ 
• Step 2: Look for the “Pradhan Mantri Fasal Bima Yojana” tab on the homepage and click on it.
• Step 3: Read the information provided on the page carefully to understand the scheme’s benefits, coverage, and eligibility criteria.
• Step 4: Click on the “Apply Online” link on the page to proceed with the application process.
• Step 5: Fill out the application form with all the necessary details, such as your name, contact details, bank account information, and crop details.
• Step 6: Upload the required documents, such as land records and applicable contract/agreement details.
• Step 7: Review all the information provided and ensure that it is correct before submitting the application.
• Step 8: After submitting the application, you will receive a confirmation message or email.
• Step 9: Track the application status using the application reference number provided to you.
• Step 10: Once the application is approved, you will receive an insurance policy document.

Note: Non-loanee farmers are not mandated to apply for the scheme, and it is voluntary. However, farmers who avail of Seasonal Agricultural Operations (SAO) loans from financial institutions are obligated to participate in the scheme. Additionally, the scheme is committed to ensuring maximum coverage of SC/ST/women farmers

Documents Required 

Here is a list of documents required for Pradhan Mantri Fasal Bima Yojana (PMFBY):

1. Necessary documentary evidence of land records prevailing in the State (Records of Right (RoR), Land Possession Certificate (LPC), etc.)
2. Applicable contract/agreement details (in case of sharecroppers/tenant farmers)
3. Loan documents provided by the financial institution (for farmers who avail of Seasonal Agricultural Operations (SAO) loans)
4. Identity proof (Aadhaar card, Voter ID, etc.)
5. Bank account details (for direct benefit transfer)
6. Duly filled application form
7. Premium payment receipt (if applicable)
8. Any other document(s) required by the insurance company or the State Government

Farmers who avail of Seasonal Agricultural Operations (SAO) loans from financial institutions are obligated to participate in the Pradhan Mantri Fasal Bima Yojana (PMFBY). To apply for the scheme, these farmers are required to submit the necessary documentary evidence of land records prevailing in the State (Records of Right (RoR), Land Possession Certificate (LPC), etc.), applicable contract/agreement details (in case of sharecroppers/tenant farmers), loan documents provided by the financial institution, and any other documents required by the insurance company or the State Government. Farmers need to check with their financial institutions for any additional documents that may be required.

Conclusion  

Pradhan Mantri Fasal Bima Yojana (PMFBY) is an excellent scheme that aims to insure the uncertainty in the agriculture sector by providing compensation to farmers suffering crop loss/damage arising out of unforeseen events. The scheme also encourages farmers to adopt innovative and modern agricultural practices and ensures the flow of credit to the agriculture sector. However, the scheme has some drawbacks and special efforts must be made to ensure maximum coverage of farmers under the scheme.