Government of India has introduced a new crop insurance scheme called Pradhan Mantri Fasal Bima Yojana; which would replace both National Agriculture Insurance Scheme and Modified National Agriculture Insurance Scheme. The Union Cabinet has approved PMFBY for formers’ welfare; this scheme will provide financial support to the farmers in the event of failure of the crop due to natural calamities, pests, and diseases. In the event of failure of the crop, farmers face financial crisis and as a result farmers become unable to continue farming. Previous schemes (NAIS & MNAIS) had high premium rates due to which few farmers adopted these schemes; but new PMFBY offers maximum sum insured at very lucrative premium rates.
Objectives of Pradhan Mantri Fasal Bima Yojana-
- To provide financial support to the farmers in the event of failure of notified crop as a result of natural calamities, pests & diseases
- To encourage farmers to adopt innovative and modern agriculture techniques
- To stabilize the income of farmers to ensure their continuance in farming
- To ensure the flow of credit to the agriculture sector