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).

GS 3

Economy

2016

12.5 Marks

Indian agriculture's inherent susceptibility to climatic uncertainties necessitates robust crop insurance mechanisms. The 18% rainfall deficit in 2024 monsoon season highlighted this critical vulnerability.

Need for Crop Insurance in Indian Agriculture

Climate Vulnerability
- Frequent droughts, floods, and cyclones affect 60% of agricultural land annually
- Temperature rise of 0.7°C since 1901 disrupting traditional cropping patterns
- Erratic monsoon patterns causing crop failures in major producing states
- Hailstorms and unseasonal rains damaging standing crops worth billions
Economic Security
- 86% small and marginal farmers lack financial cushion against crop losses
- Average farm income of Rs 10,218 monthly makes recovery from losses difficult
- Prevents distress sale of assets and accumulation of debt
- Ensures continued investment in next cropping cycle
Agricultural Sustainability
- Enables adoption of high-yield variety seeds and modern techniques
- Encourages investment in irrigation and mechanization
- Supports diversification towards horticulture and cash crops
- Promotes climate-resilient farming practices
Rural Economic Stability
- Maintains rural purchasing power supporting 40% of GDP
- Prevents farmer migration to urban areas
- Sustains employment in agriculture-dependent industries
- Supports achievement of Sustainable Development Goal 2

Salient Features of PMFBY

Feature	Details
Coverage	Pre-sowing to post-harvest protection
Technology	Satellite imagery, drones for assessment
Enrollment (2024-25)	4.19 crore farmers (32% increase)
Settlement Rate	97% claims settled
Budget Allocation	Rs 15,864 crore for 2024-25

Comprehensive Risk Coverage
- Protection against drought, flood, hailstorm, and pest attacks
- Post-harvest losses coverage for 14 days
- Localized calamity coverage with unit area approach
- Integration with Weather Based Crop Insurance Scheme
Financial Accessibility
- Premium rates: 2% for Kharif, 1.5% for Rabi crops
- Government subsidy covers remaining premium burden
- No upper limit on government subsidy unlike previous schemes
- Coverage for sharecroppers and tenant farmers
Technology-Driven Operations
- Crop Cutting Experiments (CCEs) supplemented with technology
- Mobile apps for easy enrollment and claim tracking
- Artificial Intelligence for yield estimation
- Blockchain technology for transparent claim settlement

The PMFBY's success with 97% settlement rates and rising enrollment demonstrates its effectiveness in building agricultural resilience, supporting India's journey toward doubling farmers' income by 2027.

Answer Length

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