Page 62 - Putting Farmers First

INSURANCE

Removing risk from the lives of farmers is an
important part of ensuring their financial security.

Risk mitigation in agriculture is not confined to
relief during times of disasters. Sometimes, the
risks farmers face can be extremely localised and
there could be many reasons for crop failure. In
such cases, insurance is a crucial component of
securing the efforts of farmers.

Pradhan Mantri Fasal Bima Yojana is an
important step in this regard. It expands the risk
coverage, does away with upper limit for subsidy,
considers even cyclonic and unseasonal rains as
well as hailstorms in case of post-harvest losses,
and harnesses technology for quicker claim
settlement.

Here is one example of how PMFBY can come to
the rescue of farmers. In 2016-17, in Karnataka’s
Bidar district, soyabean and tur dal were sown
in about 1.25 lakh hectares. Due to heavy rain,
around 85% of the crops were damaged.

Farmers were in deep trouble. However, the local
MP, Bhagwanth Khuba, had earlier proactively
conducted a special drive to urge farmers to take
benefit of PMFBY. Many local farmers had enrolled
for the scheme and it came as a saviour to them
during this crisis.

1.21 lakh farmers benefited from crop insurance
and received Rs 149.20 crore as compensation.
Farmers from Bidar district benefited greatly from
PMFBY in that year.

55 | Putting Farmers First