- The government’s crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) has witnessed a rise in claims ratio from farmers across the country in fiscal 2018-19.
- The higher claims ratio means farmers have claimed a larger amount of the crop insurance portfolio under the scheme as against portfolio in the previous year.
- Most of the claims have come from states like Maharashtra,Tamil Nadu and Karnataka given that crop insurance penetration was lower in heartland states like Bihar and UP.
- In overall terms,India has become the third largest crop insurance market in the world after the US and China.
- The Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) was launched in 2016.The scheme has replaced the two schemes National Agricultural Insurance Scheme(NAIS) as well as the Modified NAIS.
- PMFBY envisages a uniform premium of 2% to be paid by farmers for Kharif crops and 1.5% for Rabi crops.The premium for annual commercial and horticultural crops will be 5%.
- The PMFBY mandates compulsory coverage for all loanee farmers and non-loanee farmers too are encouraged.
- The scheme is open to all food and oilseeds crops and annual commercial horticultural crops for which past yield data is available and for which the requisite number of Crop Cutting Experiments are conducted as part of the General Crop Estimation Survey(GCES).
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