About PMFBY

• • PMFBY, launched in 2016, provides a comprehensive insurance cover against crop damage or loss arising out of unforeseen events thus helping in stabilising the income of the farmers and encouraging them for adoption of innovative practices. 
  • The scheme is administered by the Ministry of Agriculture and Farmers’ Welfare.
  • Crops covered: Oilseed crops; all food crops; Annual commercial/horticultural crops.
  • Premium: There will be a uniform premium of 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. For annual commercial and horticultural crops, the premium to be paid by farmers will be 5%.
  • Coverage: It aims at covering the losses suffered by farmers such as pre-sowing losses, post-harvest losses due to cyclonic rains and losses due to unseasonal rainfall in India. It also covers losses due to localized calamities such as inundation, hailstorm and landslide risks.
  • Exclusions: The losses arising out of war and nuclear risks, malicious damage and other preventable risks are not covered under this scheme.
  • The scheme is implemented by empanelled general insurance companies. The funds for the scheme come from the Krishi Kalyan Kosh.

• Krishi Kalyan Kosh (farmers’ welfare fund) is an emergency fund to support farmers when they incur losses due to low rates of produce, crop damage due to natural disasters, and to assist them when there is a delay in payment of minimum support price (MSP) by the Centre.

• In 2020, the Union Cabinet made the enrolment in the scheme voluntary for all farmers, including those with existing crop loans. Earlier it was mandatory for loanee farmers to take insurance cover under this scheme.

Why in News?

•  As per data available as on 30.11.2023, 435 lakh and 689 lakh farmer applications have been enrolled under the scheme during Rabi 2022-23 and Kharif 2023 seasons respectively.  
• Further, the number of farmer applications has grown 33.4% and 41% year-on-year during 2022-23 and 2021-22, respectively. 

https://pib.gov.in/PressReleasePage.aspx?PRID=1984068