Crop Insurance

Key Features of PMFBY (Pradhan Mantri Fasal Bima Yojana)

• Unit of Insurance – Based on an area-based approach, grouping regions with similar risks and yields.
• Crops Covered – Includes crops with at least 7 years of yield data, calculated using the best five years of production.
• Notified Area – State government determines the covered areas and crops per growing season.
• Farmers Covered – Mandatory for crop loan holders and Kisan Credit Card (KCC) holders.

Risks Covered

• Yield Losses – Protection against fire, lightning, floods, drought, storms, pests, and diseases.
• Prevented Sowing – Compensation up to 25% of the insured amount if adverse weather prevents sowing after expenses are incurred.
• Post-Harvest Losses – Covers crop damage up to 14 days after harvesting due to cyclones, storms, and unseasonal rains.
• Localized Calamities – Covers losses due to landslides, rockslides, and extreme heat waves.

Why Crop Insurance is Important?

Agriculture is highly dependent on weather conditions. Crop failures due to natural calamities can financially devastate farmers. This insurance helps protect their livelihoods by compensating for crop losses and reducing dependence on moneylenders.