The Pradhan Mantri fasal bima yojana (PMFBY) launched on 18 February 2016 by Prime Minister Narendra Modi is an insurance service for farmers for their yields. It was formulated in line with the One Nation–One Scheme theme by replacing the earlier two schemes National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS) by incorporating their best features and removing their inherent drawbacks (shortcomings). It aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum.
PMFBY aims to provide a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers. The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which the requisite number of Crop Cutting Experiments (CCEs) are being conducted under General Crop Estimation Survey (GCES). The scheme is implemented by empanelled general insurance companies. Selection of Implementing Agency (IA) is done by the concerned State Government through bidding. The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for others. The scheme is being administered by the Ministry of Agriculture.
The scheme has been beset by a number of problems for the farmers with unpaid dues in thousands of crores while insurance companies have pocketed the money.
Union Minister of State for Agriculture & Farmers Welfare, Parshottam Rupala said that the Central government will share premium subsidy for Pradhan Mantri Fasal Bima Yojana (PMFBY)
Praising Prime Minister Modi’s vision to provide financial security to the farmers of India from vagaries of nature and to secure their hard work, schemes like PMFBY will provide insurance coverage and financial support to the farmers in events of failure due to natural calamities, pests, and diseases and also stabilize the income of farmers to ensure their continuance in farming.