Performance of pradhan mantri fasal bima yojana in India

PMFBY is a crop insurance scheme that improved upon its predecessors to provide national insurance and financial support to farmers in the event of crop failure due to several natural and other calamities. The post harvest loses were not covered under NAIS and MNAIS schemes in all India while under PMFBY these were covered and implemented throughout the country. The use of technology and awareness is mandatory under PMFBY scheme. Present study involves the state wise performance of PMFBY since the year of its implementation. The states like Maharashtra and Rajasthan during Kharif season of 2016 were having maximum number of farmers insured. These states were also leading under area insured, sum insured, and gross premium. While during Kharif 2017 Rajasthan and Madhya Pradesh were having maximum number of farmers insured in comparison to Kharif 2016. The study revealed that there was a decrease in number of farmers insured and area insured from Kharif 2016 to Kharif 2017. While during Rabi 2016 and 2017, there was an increase in number of farmers insured as well as area insured throughout the country. Out of total insured farmers, loanee farmers constituted about 64.66 per cent in the country as a whole and 99.86 per cent in Rajasthan while non-loanee farmers constituted about 35 per cent in the country and 0.14 per cent in Rajasthan during 2018. Total area insured was 43.76 lakh hectare in Rajasthan out of 315.14 lakh hectare of country whereas gross premium collected was Rs. 2.28 thousand crore in Rajasthan while in India gross premium collected was Rs. 20.71 thousand crore under the PMFBY scheme. To make PMFBY more effective, it is suggested to provide premium discounts for farmer's group coverage and also to consider a change in claims settlement mechanism at state level which would bring in more farmers under crop insurance. The government and financial institutes must work in coordination to cover maximum farmers under PMFBY scheme and take some innovative steps in the direction of increasing share of farmers benefitted in all the states, so that benefits of the scheme could penetrate upto the grass root level of society engaged in farming.