Drawbacks of the Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana has the potential to benefit farmers, but it has several drawbacks that need to be addressed. The scheme has been criticized for its high premium rates, low claim settlements, and for excluding small and marginal farmers. Here are some of the drawbacks:
- High premium rates: The premium rates under the PMFBY are quite high, especially for small and marginal farmers. For example, the premium rate for wheat is 4.5%, which is quite high considering the fact that wheat is a relatively low-risk crop.
- Low claim settlements: The PMFBY has a very low claim settlement ratio, with only 30% of claims being settled so far. This is largely due to the fact that insurance companies are finding it difficult to assess crop losses.
- Exclusion of small and marginal farmers: Small and marginal farmers are the most vulnerable to crop losses, but they are also the ones who are excluded from the PMFBY. This is because the scheme requires farmers to have a minimum land area of 1 hectare.
Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme that was launched on 18th February 2016. The scheme aims to provide financial assistance to farmers in the event of crop loss due to natural calamities. The scheme is open to all farmers, regardless of their income level or social status. Under the scheme, farmers are required to pay a premium of 2% of the sum assured for rain-fed crops, and 5% for irrigated crops. In the event of crop loss, farmers will receive a compensation of up to 75% of the sum assured. The scheme is implemented by the Ministry of Agriculture and Farmersâ Welfare.
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