Que. Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (150 words, 10 marks)

UPSC CSE : 2016

Answer: 

Approach:

Introduction

  • Give a brief about the vulnerabilities faced in Indian agriculture.

Body

  • Discuss the need for crop insurance
  • Mention the features of PMFBY

Conclusion

  • Conclude stating that crop insurance is necessary and PMFBY is a step in the right direction.

Introduction:

Indian Agriculture is excessively dependent on monsoons. According to World Bank only 35 % of total area under cultivation in India was irrigated by 2010. Monsoon fluctuations and other natural calamities such as natural fires, typhoons, hail storms, etc have played havoc in Indian farmer’s lives. Even when there is bountiful production, the farmer has fallen victim to price fluctuations. Crop insurance plan assists in the stabilization of crop production and related income of the farmers.

Body:

Benefits of crop insurance are:

  • Protection against crop failure: Crop insurance provides protection to farmers against losses caused by crop failure and thereby ensures stability in farm income.
  • Yield protection: This provides for protection in case the production falls or decreases. They also provide protection against post-harvest losses.
  • Revenue protection: It provides for protection in case of price fluctuations. Often, during a bumper harvest year the prices crash due to increased supply. Revenue protection offers the farmer a guaranteed ‘minimum assured income’.
  • Reduce government expenditure: Crop insurance also reduces government expenditure incurred on relief measures extended to meet the havoc caused by natural calamities such as droughts and floods, locusts, plant diseases. It is a proactive response rather than reactive.
  • More investment and innovation: By protecting the economic interest of the farmers against possible risk or loss, it accelerates adoption of new agricultural practices.

Thus, recognizing the need of insurance and archaic nature of NAIS (National Agriculture Insurance Scheme), the government introduced PMFBY (PM Fasal Bima Yojana) with an aim to bring 47% of farmers under this scheme within a year, replacing the earlier NIAS and MNIAS.

Salient features of PMFBY:

  • Comprehensive coverage: It includes Rabi, Kharif crops and Horticulture crops. Apart from hailstorms, unseasonal rains, landslides and inundation like calamities, this scheme will also include post-harvest losses.
  • Uniform premium rate of 2% for Kharif crops, 1.5% for Rabi crops and 5% for commercial and horticulture crops. Premium paid by farmers is very low, the Government pays the remaining premium.
  • Aided by technology: Remote sensing, smart phones and drones are used for quick estimation of crop loss.
  • The Centre decided to limit its premium subsidy to 30% for unirrigated areas and 25% for irrigated ones. Previously, the central subsidy had no upper limit.
  • Scheme is implemented on an Area Approach basis. The area notified is village or above with a homogenous crop cultivation and risk assessment.
  • Optional enrolment: The scheme was once mandatory for loanee farmers, but since 2020, the Centre changed it to make it optional for all farmers.

Conclusion:

Climate change induced extreme weather conditions and market fluctuations have increased farmer distress. The rising number of farmer suicides and labour-migration underscore the urgent need for providing Insurance cover to safeguard farmer interests.

Know about Physics Wallah

Physics Wallah is an Indian online education platform, that provides accessible & comprehensive learning experiences to students of classes 6 to 12 and those preparing for JEE and NEET exams. We also provide extensive NCERT solutions, sample papers, NEET, JEE Mains, BITSAT previous year papers, which makes us a one-stop solution for all resources. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We successfully provide students with intensive courses by India's qualified & experienced faculties. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah’s main focus is to create accessible learning experiences for students all over India. With courses like Lakshya, Udaan, Arjuna & many others, we have been able to provide a ready solution for lakhs of aspirants. From providing Chemistry, Maths, Physics formulae to giving e-books of eminent authors, PW aims to provide reliable solutions for student prep.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others.

Aiming for UPSC?

Download Our App

# #
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.