The full form of PMFBY is Pradhan Mantri Fasal Bima Yojana. PMFBY is a social welfare scheme that provides financial support to farmers suffering crop loss or damage due to unforeseen circumstances. The scheme also encourages farmers to adopt modern and innovative agricultural practices. PMFBY was launched in India by the Ministry of Agriculture & Farmers welfare.
Objectives of PMFBY
The objectives of PMFBY are to:
Provide financial support to farmers affected by crop damage
Ensure constant flow of credit to the agriculture sector
Stabilise the income of farmers to encourage them to continue with farming
Encourage farmers to adopt and implement modern agricultural practices
All farmers sanctioned under Seasonal Agricultural Operations (SAO) loans are covered under the scheme
Coverage of crops include food crops (Cereals, Millets and Pulses), oilseeds, annual commercial/annual horticultural crops
Losses arising out of war and nuclear risks, malicious damage and other preventable risks are excluded
The maximum premium payable by farmers is 2% for all food and oilseeds crops grown in the kharif (summer) season, 1.5% for same crops grown in rabi (winter) season and 5% for commercial and horticulture crops
The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State
PMFBY (full form – Pradhan Mantri Fasal Bima Yojana) aims to provide a financial cushion for farmers during unforeseen circumstances, like crop loss. However, not all states provide the PMFBY facility.
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