its slide Pradhan Mantri Fasal Bima Yojna its very helpfull for Agriculture Students

2. Seminar Topic
on
Economic Benefit of PMFBY and its Impact on Agriculture
Submitted by Submitted to
Dharmendra Kumar Dr. S.K. Biswas
Ph.D.(Ag) Economics (Head of the Department)
I.D.-CA- 12385/22
Department of Agricultural Economics & Statistics

3. CONTANT
• Introduction
• Objective
• Highlight of scheme
• Budget under PMFBY
• Crop cover under the scheme
• Calendar activity
• How to apply and claim
• Comparison with previous scheme
• State wise statistics
• Advantage And Disadvantage

4. Agriculture in India is wholly depends on nature. Crop
insurance scheme has been implemented to protect the
farmer from perils of nature. It was launched by Prime
minister. Mr. Narendra Modi on 18 February 2016 in a
Kisan Maha Sammelan at Sehore Madhya Pradesh ,
to help the farmer and which can help to boost
agriculture production. This scheme will replace
National Agriculture Insurance Scheme (NAIS)
which is started in 1999.
The scheme was launched in 2016 by the Ministry of
Agriculture and Farmers' Welfare. It is the largest
agricultural insurance scheme in the world, covering
over 50 crore farmers and providing insurance coverage
for over 50 different crops. (pmfby.gov.in) .

5. OBJECTIVE
• To provide insurance coverage and financial support
to the farmers in the event of failure of any of the
notified crops as a result of natural calamities, pests &
diseases.
• To stabilize the income of farmers to ensure their
continuance in farming.
• To encourage farmers to adopt innovative and modern
agricultural practices.
• To ensure the flow of credit to the agriculture sector.

6. • There were be a uniform premium of only 2% to be paid by farmers for all Kharif crop and 1.5%
for all Rabi crops. In case of annual commercial and horticulture crops, the premium to be paid by
farmers will be only 5%..
• There is no upper limit on government subsidy. Even if balance premium is 90%, it will be borne
by the government.
• PMFBY is replacement scheme of NAIS/MNAIS there will be exemption from Service tax
liability of all the services involved in the implementation of the scheme. It is estimated that the
new scheme will ensure about 75-80% of subsidy for the farmers in insurance premium.
• MNAIS - Modified National Agriculture Insurance Scheme (2010)
• NAIS- National Agriculture Insurance Scheme (1999)

7. BUDGET
UNDER PMFBY
• The Pradhan Mantri
Fasal Bima Yojana
(PMFBY) has received
an additional impetus
with the government
allocation Rs.13625 crore
2023-24.
(Ministry of Agriculture
and Farmers Welfare)

8. CROPS COVERED
UNDER THIS SCHEME
• Under this new crop insurance plan, the premium rate will be
2%,1.5% and 5% for all types crop like kharif crop, Rabi
crops .Horticulture crops and commercial crops important
crops below-
• Foods crops:- cereals ( including Wheat, paddy, Barley,
millets, Paddy)
• Annual Commercial crops:- Cotton, Jute, Sugarcane
• Pulses:- red gram, Gram, Pea, lentils, Soyabean, Moong,
Urad Cowpea
• Oilseed:- sesame, Mustard, castor Cottonseed, Groundnut,
Soyabean Rapeseed, San flower, linseed.
• Horticulture crops:- Banana, Grapes, Papaya, Onion, Apple,
Mango, orange, Guava, litchi, Papaya, pineapple, Sapota,
Tomato, cauliflower

9. CALENDAR ACTIVITY
Activity Kharif (2%) Rabi(1.5%)
Loaning period ( loan
sanctioned) loanee farmers
covers covered on compulsory
April to July October to December
Cut-off date for receipt of
proposals of farmers (Loanee&
non loanee)
31 July 31 December
date for receipt of yield data Within a month from final harvest Within a month from final harvest

10. HOW TO APPLY AND CLAIM
• Farmers can enroll for PMFBY through bank, broker, CSC, e- Government
Services India Limited ,OR
• Directly through the website( PMFBY)
• Note- The application for PMFBY must be submitted within 10 days of
sowing.
• Document:- Bank account number
• ,Adhar card,
• Khasra number of land.
Agreement Photocopy( incase land of another farmer.),
How to apply claim:- If crop get ruined to a natural calamity like flood,
storm, drought, natural fire etc. Then inform the insurance company
within 72 hours toll free number 1800-209-5959

11. PREMIUM
CALCULATE
Kharif crops (PMFBY) Rabi Crops ( PMFBY)

12. RISK COVERED UNDER THE SCHEME
• Yield losses ( standing crops , on notified area basis). 1.natural fire and
Lightning, 2.storm, hailstorm, cyclone ,typhoon. 3.Flood inundation,
landslide.4.Drought dry spells. 5. Pests/ diseases etc.
Prevented sowing- farmer shall be eligible for claim up to maximum 25% of
the sum-insured.
Post- harvest losses- Coverage is available up-to maximum period of 14 days
from the harvesting.
Localized calamities ( individual farm basis)- Hailstorm, landslide,
inundation affecting isolated farms.
Risks and losses not will covered in PMFBY: - War, nuclear risks, Riods,
Theft, act of enmity grazed other preventable risks.

13. COMPARISON WITH PREVIOUS SCHEME
Sr. n. Feature NAIS
(1999)
MNAIS
(2010)
PM Crop Insurance Scheme
1 Premium rate Low High Lower than even NAIS (Govt to
contribute 5 times that of farmers
2 One Season – one premium Yes No Yes
3 Insurance Amount cover Full Capped Full
4 On Account Payment No Yes Yes
5 Localized risk covered No Hail ,storm ,Land
slide
Hail, strom , landslide,
inundation
6 Post harvest losses covered No Coastal , areas for
cyclone rain
All India for cyclonic +
Unseasonal
7 Prevented sowing coverage no Yes Yes
8 Use Technology No Intended Mandatory
9 Awareness No No Yes (Target to double
coverage to 50%

14. F Y 2 0 1 9 - 2 0 - P M F B Y & RW B C I S C O M B I N E D - S TAT E W I S E
B U S I N E S S S TAT I S T I C S A S O N 3 1 . 0 8 . 2 0 2 1
State/UT
Name
Farmers
Application
s Insured
(Lakh)
Area
Insured
(Lakh ha)
Sum
Insured Farmers
Share in
Premium(In
crore)
Gross
Premium
(In crore)
Reported
Claims
Paid
Claims(In
crore)
Paid
Claims(In
crore)
Farmer
Application
s Benefitted
(Lakh)
Uttar
Pradesh
46.947 35.572 16,743.95 321.955 1 ,304.82 1 ,116.75 1 ,092.74 9.343
Haryana 17.111 22.505 15,132.97 268.803 1 ,221.72 932.26 927.45 5.552
Madhya
Pradesh
78.929 112.682 32030.72 629.279 3758.65 5905.48 5811.75 30.546
Other 469.913 330.241 155132.36 3281.963 25736.81 18938.51 17990.06 178.159
Grand total 612.9 501.0 219040 4502 32022 26893 25822 223.6

15. IMPACT ON AGRICULTURE SECTOR
• 1.Financial Support to Farmers
• 2. Improved Agricultural Practices:- PMFBY encourage farmers to
adopt innovation and modern agricultural practices.
• 3. Coverage and growth: - The scheme covers more than 60 million
farmers and 30% of the gross cropped area.
• 4. Risk mitigation:-
• 5. Technological Adoption : - the scheme has also promoted the adoption
of technology which has improved efficiency and transparency.

16. ADVANTAGE
• Wide coverage
• Affordable premiums
• Quick claim settlement
• Use of technology
• Risk management
• Reduced Premium Contributions:
• PMFBY significantly reduces the financial burden on farmers by
offering lower premium rates. Farmers contribute only 2% for
Kharif crops, 1.5% for Rabi crops, and 5% for Annual and
Commercial crops, making insurance more affordable.
• Prompt On-Account Claim Payments:
• Farmers receive on-account claim payments in case of
prevented sowing or localized losses. This ensures timely
financial support to cope with adverse conditions.

17. DISADVANTAGE
• Delayed Claim Settlements:- Farmers often experience
delays in receiving payment, which can be critical during
crop failures
• Benefiting Insurance Companies :- There are concerns that
the scheme is more beneficial to private insurance companies
than to the farmers themselves.
• Inadequate Awareness:- Farmer may not be fully aware of
the schemes benefits or how to avail them, leading to
underutilization.
• Complexity in Assessment:- Conducting crop-cutting
experiments, which are necessary for the claim assessments,
can be complex and challenging, especially for horticulture
crops.
• These issues highlight the need for improvements in the
schemes implementation to ensure that it effectively serves
the farmers it is intended to support.

18. CONCLUSION
• Agriculture in India is wholly Depend on
nature. Given the uncertainties of natural
disasters, farmers should insure their crops
in time. Due to which economic losses
caused by natural disasters can be reduced.
• Crop insurance scheme is increasing year by
year.
• All natural calamities are covered in
PMFBY.
• Premium is Affordable
• The claim amount is transferred
directly to the farmers accounts.