NEW DELHI, 9 March 2024: India's Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme is witnessing a significant rise in participation, with a 27% increase in farmer enrollment reported so far for the 2023-24 season. This follows impressive year-on-year growth of 33.4% and 41% in 2021-22 and 2022-23, respectively.
Key Points
- Strong Growth: Over the past eight years, PMFBY has enrolled a staggering 56.8 crore farmers, with over 23.22 crore receiving claims for crop losses.
- High Claim Ratio: For every Rs. 100 paid in premiums, farmers have received an average of Rs. 500 in claims, highlighting the scheme's effectiveness.
- Voluntary Participation: PMFBY is a demand-driven scheme, voluntary for both states and farmers. This year, a notable trend is the rise of non-loanee farmers enrolling, with 42% of insured farmers in 2023-24 opting in independently.
- Scheme Improvements: The government has continuously improved PMFBY based on stakeholder feedback. Key changes include:
- Voluntary participation for all farmers.
- Increased technology usage for efficiency.
- Revised financial sharing between central and state governments in the Northeast.
- Freedom for states to customize risk coverage.
- Three-year contracts for insurance companies.
- Focus on Timely Claims: The Department of Agriculture & Family Welfare closely monitors claim settlements through regular meetings with stakeholders and technological advancements for faster data flow.
Looking Ahead
The government's efforts, including increased IEC activities and technological advancements, aim to further expand PMFBY coverage and ensure timely claim payouts to farmers. This will provide crucial financial security and empower them to navigate agricultural risks.