An Impact Assessments of Pradhan Mantri Fasal Bima Yojana Among Rice Farmers in Cauvery Delta Region of Tamil Nadu

An attempt was made to study the impact of Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme in Tamil Nadu with a focus on assessing the performance, awareness and extent of adoption of the scheme through attitude of the farmers, determinants of adoption, among insurers and non- insurers, impact of PMFBY on farmer’s income, perception and constraints in PMFBY. Multi-stage purposive random sampling method was applied in Cauvery delta region of Tamilnadu. Thiruvarur and Nagapattinam districts were selected for the study. Total sample size was 180 farmers (120 insured farmer’s and 60 non-insured farmers). PMFBY had a growth of 2.52 and 9.98 per cent in number of farmers insured and gross premiums collected, respectively during the period of 2016 to 2023. However, multiple state withdrawals caused a delay in claims processing and an increase in premium prices, leading to a 13.89 per cent decrease in farmer benefits and 5.83 per cent decline in insured area. Size of the farm, credit availed by the farmer and the social participation of a farmer had a significant positive influence on the awareness level of PMFBY scheme. Moreover, the size of the farm, farm income, non-farm income, number of earners in the family and affordability of premium was found to be significant and positively influencing the farmer’s willingness to pay premium price for PMFBY. Perception analysis indicated that in the case of insured farmers, majority of the farmers were aware of the PMFBY crop insurance scheme and its provisions and were clear about the settlement of claims. There was strong disagreement among the farmers for involvement of private insurance companies for coverage under PMFBY. In case of insured non-insured farmers, majority of farmers perceived that procedures in availing PMFBY were lengthy and the claims received were less compared to actual crop loss incurred in the farm. Major constraint in adopting PMFBY was found to be dissatisfaction with area approach claim assessment for crop loss followed by lack of awareness about the cut off dates for enrolment in PMFBY. Moreover, there were also constraints in loan disbursement from banks, delay in claim settlements from insurance companies, lack of service by banks to farmers. Steps should be taken by the implementing agency and the agricultural department to conduct Crop Cutting Experiments (CCES) at the earliest possible and claims should be settled within one month after receipt of the yield data status.