Centre allocates Rs 16,000 crore for PM Fasal Bima Yojana, up by around Rs 305 crore over previous fiscal year

Government has allocated Rs 16,000 crore for Pradhan Mantri Fasal Bima Yojana (PMFBY) for 2021-22 to boost the safety of farmers' crops.

Agriculture and Farmers Welfare Ministry said, this will ensure maximum benefit of crop insurance reaches to farmers. The Ministry said, this is a budgetary increase of around Rs 305 crore as against the previous fiscal year 2020-21, which reiterates the government's commitment towards the growth of the agriculture sector in the country.

The scheme extends coverage for the entire cropping cycle from pre-sowing to post-harvest including coverage for losses arising out of prevented sowing and mid-season adversities. The government had approved this flagship crop insurance scheme, five years ago, on January 13, 2016. The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers.

The Ministry said, today, Pradhan Mantri Fasal Bima Yojana is globally the largest crop insurance scheme in terms of farmer participation and 3rd largest in terms of premium. Over 5.50 crore farmer applications are received on a year-on-year basis.

The Ministry said, over the past five years, the government has worked extensively towards revamping the scheme by relooking at the structural, logistical and other challenges. The scheme has made it easier for the farmers to report crop loss within 72 hours of the occurrence of any event through the Crop Insurance App or the nearest agriculture officer. Claim benefit is then provided electronically into the bank accounts of the eligible farmer.

The Ministry said, out of total farmers enrolled under the scheme, 84 per cent are small and marginal farmers. The government's aim is to resolve structural, logistical, and other challenges, and expand the benefit of Pradhan Mantri Fasal Bima Yojana to all farmers for an Aatma Nirbhar Bharat.