PMFBY has provided coverage to 366.64 lakh farmers (26.50%) and at this rate it is likely to exceed the target of 30% coverage for both Kharif and Rabi seasons in 2016-17

The Pradhan Mantri Fasal Bima Yojana (PMFBY) launched in the country from Kharif 2016 has made impressive progress in the first season itself. As on date the scheme has provided coverage to 366.64 lakh farmers (26.50%) and at this rate it is likely to exceeding the target of 30% coverage for both Kharif and Rabi seasons in 2016-17.

In terms of total area covered the achievement has been significant amounting to a total area of 388.62 lakh ha. and sum insured of Rs. 141339 crore. The Pradhan Mantri Fasal Bima Yojana was recast as a new scheme by the Government as the earlier existing insurance schemes were not meeting the full requirements of the farmers for insurance coverage.

The performance this season has improved by 18.50% in terms of farmers coverage, 15% in terms of area coverage and 104% in terms of sum insured in comparison to Kharif 2015, which happened to be one of the worst drought affected seasons when the number of farmers covered was 309 lakh (22.33%), total area coverage was 339 lakh ha. and sum insured was Rs. 69307 crore. The performance in Kharif 2016 is better despite the fact that there were teething issues to begin with. For instance, many States did the bidding process for selection of the insurance companies for concerned clusters for the first time and consequently, the notification of the scheme was delayed in a number of States.

The achievements in Kharif 2016 as compared to Kharif 2015 are notable specially as in Kharif 2015 in most of the States the cut-off date for availing insurance for loanee farmers was 30th September, 2016 and the enrolment under crop insurance shot up after prolonged spell of drought, whereas this year has been one of normal monsoons and window for availing insurance was much smaller with the cut-off date for availing insurance being 31st July, 2016, which was later extended to 10th of August, 2016.

Furthermore there has been a quantum jump of more than 6 times in the coverage of non-loanee farmers from 14.88 lakh in Kharif 2015 to 102.6 lakh in Kharif 2016, which shows that the scheme has been well received by the non-loanee segment. Another significant achievement in this season has been 104% enhancement in sum insured. This was made possible as PMFBY mandates that the sum insured must be equal to the Scale of Finance and therefore, reflects better risk coverage of farmers in comparison to earlier schemes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.