Pradhan Mantri Fasal Bima Yojana

WHY WAS FASAL BIMA YOJANA NEEDED?

Farmers are the backbone of the Indian economy; indeed, they play a vital role in the country’s economic contribution. They are also important because they grow grains for the entire country’s consumption. The following are the reasons that justify this scheme:

1. Pest attack: Sometimes pests damage the whole crop and thus make the whole hard work of farmers go in vain.

2. Unpredictable weather: Though monsoon is a blessing for the Indian Peninsula, it sometimes becomes a nightmare for farmers by distorting the crops in the field.

3. Debt trap: In case crops don’t grow properly on time and farmers don’t get the return for their hard work, as a result, they fall into heavy debts.

4. Price uncertainty: Even if the crop is good, sometimes, because of price fluctuations, farmers don’t get a good price.

Such issues lead to tragic situations where farmers are unable to handle the situation and, eventually, take extreme steps.

The government has formulated the Fasal Bima Yojana thus to avoid these difficulties faced by our farmers. It gives farmers hope; in other words, if the crop fails, they will be taken care of by the Government.

BENEFITS OF FASAL BIMA YOJANA: –

1. Reasonable premium: The premium amount depends on the type of crop. The maximum premium payable is 2% for Kharif food and oilseed crops. and it is 1.5% for Rabi foods and oilseed crops. For horticulture crops and yearly commercial, it is 5%. The Government furthermore subsidizes the remaining premium.

For farmers in the northeastern states of Jammu and Kashmir and Himachal Pradesh, the Government pays the entire premium as a whole.

2. Comprehensive Coverage: The scheme covers natural disasters like floods, droughts, and pest attacks, and also crop diseases. Post-harvest losses like hailstorms and landslides are also included.

3. Timely help – The Scheme promises to give compensation within the minimum possible time.

4. Encourages Sustainable Agriculture: It encourages farmers to keep farming even in difficult times.

5. Promotes farmers’ confidence: Farmers can invest in better seeds, fertilizers, and costly farming techniques without fear, as they are sure that the scheme is there to support.

OBJECTIVE OF THE FASAL BIMA YOJANA:-

1. Encourages farmers to continue farming activities: It gives confidence to farmers that the insurance is there even if they lose their crop because of some unexpected circumstances, thereby boosting farmers’ confidence to continue farming without losing hope.

2. Provide a safety net to farmers from Crop loss: It gives financial help to farmers, especially at a time when their crops are damaged due to natural disasters, pests, and diseases.

3. Decreases the farmer suicide rate: It reduces the level of stress and depression among the poor farmers and thereby prevents tragic events like suicide caused by heavy debts and crop losses.

4. Insures farmers’ stable income: It provides a stable income even after farmers face crop failure.

5. Encourages modern farming techniques: It encourages farmers to use better technology, seeds, and fertilizers, irrespective of any fear of loss.

6. Provide inexpensive crop insurance: The scheme provides insurance at a very low premium, which allows even small farmers to afford it.

7. Boost the Rural economy: By protecting the livelihood of farmers’ families, the Fasal Bima Yojana boosts rural development as a whole.

EXCLUSION TO THE SCHEME: –

LOSSES OUTSIDE THE CROP CYCLE:

Crop losses occurring outside the specified crop cycle are often not covered under this provision.

1.Harvest Losses( Standing crops):

The Scheme covers harvest losses that come under non-preventable risks, such as Lightning and fire, hailstorm, storm, tornado, flood, landslides, drought, pests, and diseases.

2. Sowing failure: There may be situations where the majority of farmers in the notified regions who are insured wish to plant or sow. In these situations, they are unable to grow or sow insured crops due to unfavorable weather circumstances and must pay for that reason. Following that, these farmers will be qualified to receive up to 25% of the insured amount in indemnity claims.
3. Losses after harvest: The Government covers each farm’s post-harvest losses individually. The Government covers crops spread in “cut and spread” state for a maximum of 14 days after harvest. This means that farmers who have left their crops to be sun-baked in the field after harvesting, yet have had them destroyed by cyclones or cyclonic rains that have occurred nationwide, are covered by the government.

4. Area-specific disasters: The Government provides compensation for localized disasters on an individual farm basis. The Government insures loss or damage because of localized hazards such as hailstorms, landslides, and inundation impacting separated farm lands in the notified area under this scheme.

The loss incurred is not eligible for compensation if the loss is not directly related to the growing season.

NON NOTIFIED AREA:

PMFBY is applicable for notified areas only, and PMFBY generally doesn’t cover crop losses in non-notified areas. The farmers may not receive compensation if the farmers in the areas are not designated under the scheme.

NON COMPLIANCE AND NEGLIGENCE: –

This scheme doesn’t cover losses because of farmers’ noncompliance with recommended agricultural practices, negligence, or failure to protect the crop moderately.

NON PREMIUM PAYMENT: If the farmer doesn’t make the premium contribution on time, he is not eligible for coverage under this scheme. Nonpayment of premiums may lead to cancellation of insurance.

LOSSES BEYOND SPECIFIC LIMITS: -Some losses over and above defined limits or thresholds may not be insured. The plan may have preset standards for figuring out how much loss is eligible for reimbursement.

ELIGIBILITY FOR FASAL BIMA YOJANA: –

1. All farmers, including sharecroppers growing notified crops in notified areas and tenant farmers.
2. Farmers must own an authenticated and valid land ownership certificate or a valid land tenure agreement.
3. Farmers must have an insurable interest in the insured crops.
4. The farmers must have registered for insurance coverage within the prescribed time frame, ie, within 2 weeks of the start of the seed sowing season.
5. The farmers must have a cultivator or sharecropper on the insured land.
6. Farmers must not have received any kind of compensation for the same crop loss from any other source.

DOCUMENTS REQUIRED:

• The following are the documents required for applying for this scheme:
• Passport-sized photograph
• Passbook
• Identity Proof(Aadhar card/PAN card/Voter ID card/Bank passbook with photo, Kisan Photo Book/NREGA Job card)
• Evidence of Land records, as per the state Records of Right(RoR), Land Possession certificate(LPC), and other applicable agreements, contracts notified or permitted by the state.
• Declaration about the crop sown/planned to be sown.

How To Apply:

A farmer may apply for the scheme either online or offline.

Offline Method- Via CSCs(Common Service Centers).

Online:

1. Visit the official website of “Pradhan Mantri Fasal Bima Yojana,” ie, https://pmfby.gov.in/

2. On the left side of the homepage, click “Farmer Corner”.In the pop-up window, click  “Guest Farmer”. You will be taken to the Online registration Form.

If already registered, go directly to 4th step.

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3.In Registration form , fill the following details:
• Farmer detail: Full name, Passbook name, Relationship, Relative Name, Mobile No., Age caste category, Gender, Farmer type, Farmer category.
• Residential detail: State, District, Sub District, Residential village/Town, Full address with PIN Code.
• Farmer ID: ID type and ID number
• Account details: Bank Name, Branch Name, IFSC, Savings Bank, Account number, Confirm saving bank account number
At the bottom of Registration form,fill the Captcha code and click “Create User”.

4. Click on “Farmer Corner” (Apply for Crop Insurance Yourself) after successful registration. The system will take you to the login page once you click “Login for Farmer” in the pop-up window.

https://pmfby.gov.in/farmerLogin

5. On the Login Page, provide your mobile number, fill in the captcha code, then click” Request for OTP”. Click submit after entering the OTP received on your registered mobile number. You will be taken to “Farmer Application Form”.

6. Upload all the mandatory documents in the specified size and format after filling all the required fields.
Before applying, click on “Preview” button to carefully review the application and check the correctness of the information provided by you. After preview, apply by clicking the Submit button. You will receive a confirmation message.

7. a In the pop-up window, you will get two options for payment. “Pay Later” and “Make payment”. If you want to make a payment for a premium at a later stage, select “Pay later”. Otherwise, select “Make Payment”.

8. Upon successful payment, you may print the payment slip.
You may track the status of your application on PMFBY website through the “Application status” option on the home page.

Challenges

1. Low awareness: Many farmers are not aware of this scheme because they are busy earning their bread from morning to night. They don’t know how to apply.
2. Complicated process: The Registration process is difficult for uneducated farmers.
3. Delay in claim payment: Because of so many formalities to release the compensation amount, farmers consequently receive the amount very late.
4. Poor use of technology: Data collection at the ground level in fact, is very poor and ineffective.
5. Trust issues: Due to past delays and rejections,as a result, many farmers don’t trust insurance companies.

WAY FORWARDS:-

1. More awareness campaign: The Government should use radio, TV, and village meetings in addition to educating farmers and raising awareness about the scheme.

2. Simple registration process: A one-page form with required fields, and moreover, help from CSCs can ease the process.

3. Faster Claim Settlement: Claim settlement can be made easy and streamlined. GPS, Drones, and mobile apps are helpful tools for faster claim settlement.

4. Farmer training: The Government should train the farmers about the benefits and process of registration for this scheme.

5. Strict Monitoring of Insurance Companies: The Government should monitor the working of insurance companies and ensure timely and fair payment.

CONCLUSION:-

The “Pradhan Mantri Fasal Bima Yojana” is not just a Government scheme; rather, it is a big ray of hope for farmers, and it is a message from the Government to our farmers: “We are with you.”

It provides security to the future of farmers, moreover, strength to their shoulders, and hope to their hearts. Though there are various challenges as mentioned above, the purpose of the scheme is clear and very pure. It is ultimately a big step by the Government of India to minimize the pain of farmers during crop loss. It gives them financial support when their crops fail, especially due to bad weather, floods, hailstorms, droughts, pests, or any diseases. The scheme, correspondingly, provides confidence to the farmers about their future. With a very low premium, farmers can get very good insurance coverage. Because of low premium rates, even small and poor farmers can also avail themselves of the benefits of this scheme.

Farmers are the real heroes who feed the nation, and they deserve our full support. Fasal Bima Yojana ultimately gives them strength and hope to continue farming without fear.

Let us appreciate the hands that feed us. And let’s pray that the ray of hope lightens every farmer’s home.

To read more Government schemes, kindly visit:

www.blessedimran.com