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Monday, October 25, 2021
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Govt allocates Rs.5501cr for PMFBY

NEW DELHI: Government has made a budget provision of Rs.5501.15 crore  for the scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY) for 2016-17. Minister of State for Agriculture & Farmers Welfare,  Parshottam Rupala informed Rajya Sabha on Friday.

To provide financial support to farmers suffering crop loss/damage arising out of unforeseen events, centre has approved a new scheme ,PMFBY. This scheme will implement in all States and Union Territories from Kharif 2016 season in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). PMFBY is a marked improvement over the earlier schemes on several counts and comprehensive risk coverage from pre-sowing to post-harvest losses has been provided under it.

The PMFBY is compulsory for loanee farmers availing crop loans for notified crops in notified areas and voluntary for non-loanee farmers.

Scale of Finance declared by the District Level Technical Committee has been taken as Sum Insured of the crops under the Scheme. There is no capping in premium, however, premium payable by farmers has been substantially reduced and simplified and there is one premium rate on pan-India basis for farmers which would be maximum 1.5%, 2% and 5% for all Rabi, Kharif and annual horticultural/commercial crops, respectively.