UPSC Prelims 2016 Question:

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:

1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate for any reason of the year. 
2. This scheme covers post harvest losses arising out of cyclones and unseasonal rains.
   
   

Which of the statements given above is/are correct?

Explanation: 

• The Pradhan Mantri Fasal Bima Yojana (PMFBY) replaced the earlier scheme named National Agricultural Insurance Scheme. It aims to provide compensation to farmers suffering crop loss/damage arising out of unforeseen events. This flow of credit will ensure food security and crop diversification. The features of the schemes are as follows:
  • Coverage of Farmers: All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. 
  • Coverage of Crops: Food crops (Cereals, Millets & Pulses), Oilseeds, Annual Commercial / Horticultural crops.
  • Premium Rates: There will be a premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%. So, statement 1 is not  correct.
  • Risks covered: Yield Losses (standing crops, on notified area basis) and post-harvest losses are also covered. In post-harvest losses, coverage will be available up to a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field. So, statement 2 is correct.
    
    

Therefore, option (2) is the correct answer.

Relevance: In 2016, the Union Cabinet approved the new crop damage insurance scheme named ‘Pradhan Mantri Fasal Bima Yojana’ (PMFBY). 

Subject: Polity | Government Schemes and Policies(pol)