Pradhan Mantri Fasal Bima Yojana (PMFBY): We have collected the most important points about the Pradhan Mantri Fasal Bima Yojana that are important for exam point of view. We have a collection of Government Schemes that are important for Competitive Exams. How much do you know about the Pradhan Mantri Fasal Bima Yojana? The post will be informative and be useful for future quick revision for competitive exams.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Purpose: It is a crop insurance scheme that compensates farmers if any of the notified crops fail due to natural calamities, pests and diseases. The scheme not just insulates the farmer from income shocks, but also encourage them to adopt modern agricultural practices.
Launch Year: 2016
It has replaced the National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
Crops insured under PMFBY and premium to be paid by farmers
Season
Crops
Premium
(% of Sum Insured)
Rabi
All food grain and Oilseeds crops (all Cereals, Millets, Pulses and oilseeds)
1.5%
Kharif
All food grain and Oilseeds crops (all Cereals, Millets, Pulses and oilseeds)
2.0%
Rabi and Kharif
Horticultural crops
5.0%
This premium is the subsidised premium to be paid by the farmers. The Insurance company may charge more premium than this. So the difference between the two rates will be paid by the Government (50% by State Government and 50% by Central Government).
Who can opt for the Scheme?
- The scheme is compulsory for loanee farmer obtaining Crop Loan /KCC account for notified crops.
- However, voluntary for Other/non loanee farmers who have insurable interest in the insured crop(s).
Funds: The funds required by Government for this scheme comes from Krishi Kalyan Kosh.
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