The government’s flagship crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) has assisted 40m farmers since it was launched in February 2016, said Finance Minister Nirmala Sitharaman in delivering the Interim Budget 2024-25 last week.
PMFBY provides insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests and diseases. Hailstorm has been included in post-harvest losses, besides unseasonal and cyclonic rainfall. Further, cloudburst and natural fire have been included in the localised calamities in addition to landslide and inundation.
PMFBY ensures minimal financial burden on the farmer as he or she is obligated to pay only 1.5% and 2% of the premium payable for rabi crops (sown in November) and kharif crops (sown in early May), respectively. It can be purchased from a select set of insurers such as Agriculture Insurance Company, state-run insurers and empanelled private-sector insurers.
PMFBY is open to both loanee and non-loanee farmers. It covers food crops (cereals, millets and pulses), oilseeds as well as horticultural crops.
Ms Sitharaman presented the interim Union Budget 2024 on 1 February because the general election is set to be held in April and May. The interim Budget is presented to keep essential government operations funded until the newly elected government presents its full Budget.
In the previous Budget for the fiscal year ending 31 March 2024, the government allocated INR136.25bn ($1.6bn) to the PMFBY. The amount allocated in FY2022-23 was INR155bn.
