Friday, January 15, 2016

Pradhan Mantri Fasal Bima Yojana : A Boost to the Farming Sector

Pradhan Mantri Fasal Bima Yojana  : Pradhan Mantri Fasal Bima Yojana has been approved by the Union Government. It is a new crop insurance scheme to enhance farming sector in the country. It is farmers’ welfare scheme that intends to reduce the major burden on farmers and mThe Union Home Minister, Shri Rajnath Singh, the Union Minister for Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs, Shri M. Venkaiah Naidu and the Union Minister for Agriculture and Farmers Welfare, Shri Radha Mohan Singh briefing the media on Cabinet Decisions, in New Delhi on January 13, 2016. The Secretary, Department of Agriculture and Cooperation & Farmers Welfare, Shri Siraj Hussain and the Director General (M&C), Press Information Bureau, Shri A.P. Frank Noronha are also seen.ake certain early settlement of crop assurance claim for the full insured sum.

On Scheme Uniform premium: Farmers will pay uniform premium of 2 per cent for all Kharif crops and 1.5 percent for all Rabi crops. In case of yearly horticultural and commercial crops, farmers will pay 5 per cent premium. These premium rates are very low. Government will pay balance premium to provide full insured amount to the farmers against crop loss on account of natural calamities.

Government subsidy: There will be no upper limit subsidy given by Government even if balance premium is 90 percent.

Capping the Premium: The provision of capping the premium rate has been removed and farmers will get claim against full sum insured without any reduction.

Use of technology: Government will encourage use of technology especially Smart phones and remote sensing to a great extent. In order to reduce the delays in claim payment to farmers, smart phones will be used to capture and upload data of crop cutting. To reduce the number of crop cutting experiments remote sensing will be used.

Click On the image to see in full view

Comparison Between Previous Crop Insurance and New Crop Insurance Plan

Important Points For Exam Perspective:-

1.There will be a uniform premium of only 2% to be paid by farmers for all kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticulture crops,the premium to be paid by farmers will be only 5%.(Ex:- Banana Corps).Extra Premium will be paid by government.
(For example if one farmer do a insurance of 1 lakh then for kharif crops he will have to pay 2000/- only as premium rest will be paid by govt.)

2.There is no upper limit on Government Subsidy.Even if balance premium is 90%,it will be borne by the govt.
3.The use of technology will be encouraged to a great extent.

4.Smart Phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers.Remote sensing will be used to reduce the number of crop cutting experiments.
(This is one of the disadvantage in the scheme because smart phone is mandatory and 80% farmer doesn't have the smart phone. So this can create a problem)
5.Tagline of the scheme- One Nation-One Scheme theme

For More Info :