Note4Students
From UPSC perspective, the following things are important :
Mains level: Initiatives related to agriculture;
Why in the News?
The government extended two crop insurance schemes, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS), for another year until 2025-26. It also set aside ₹824.77 crore to improve these schemes using advanced technology.
What are the provisions and key features of PMFBY?
- Comprehensive Risk Coverage: PMFBY provides coverage against all non-preventable natural risks from pre-sowing to post-harvest stages, including droughts, floods, and pests.
- Subsidised Premium Rates: Farmers pay a fixed premium of 1.5% for rabi crops, 2% for kharif crops, and 5% for cash crops. The remaining premium is shared between the central and state governments.
- Financial Support: It offers financial assistance to farmers suffering from crop loss due to unforeseen events, aiming to stabilise their income and encourage modern agricultural practices.
- Technology Integration: The scheme incorporates technological initiatives like YES-TECH for yield estimation and WINDS for weather data collection, enhancing efficiency in claim settlement.
Why was RWBCIS introduced?
- Financial Protection Against Weather Risks: RWBCIS was introduced to safeguard farmers from financial losses caused by adverse weather conditions such as rainfall, temperature fluctuations, wind, and humidity, which can severely impact crop yields and farmer income.
- Comprehensive Coverage for Various Crops: The scheme aims to provide insurance protection for a wide range of crops, including food crops, oilseeds, and commercial or horticultural crops, thereby mitigating the impact of natural calamities like droughts and floods on farmers’ livelihoods.
What is the difference between PMFBY and RWBCIS?
| PMFBY (Pradhan Mantri Fasal Bima Yojana) | RWBCIS (Restructured Weather-Based Crop Insurance Scheme) | |
| Launch | Launched in 2016 (replacing NAIS and MNAIS). | Introduced in 2016 to safeguard farmers against adverse weather conditions. |
| Primary Focus | Protects against crop failure due to natural calamities, pests, diseases. | Provides insurance based on weather parameters (e.g., rainfall, temperature, wind) to mitigate financial losses from weather extremes. |
| Risk Assessment Method | – Area-based approach with crop-cutting experiments, remote sensing, etc. – Yield vs. threshold yield determines compensation. |
– Weather-based triggers using data from weather stations. – Predefined thresholds (e.g., rainfall levels) activate payouts automatically. |
| Premium Structure | – Uniform, capped rates for farmers: 2% for Kharif, 1.5% for Rabi, 5% for horticulture/commercial crops. – No upper limit on government subsidy. |
– Varies based on weather risks and policy design. – Similar subsidy approach, but rates are dependent on specific weather-based insurance products. |
| Coverage | – All notified crops in a defined area. – Includes food crops, oilseeds, and commercial/horticultural crops. |
– Covers food crops, oilseeds, and commercial/horticultural crops for weather-induced losses (e.g., drought, flood, cyclone, hailstorm). |
| Enrollment | – Initially compulsory for farmers with crop loans (KCC). – Made voluntary for all farmers from Kharif 2020. |
– All farmers, including sharecroppers and tenant farmers, are eligible if they grow notified crops in notified areas. |
| Key Objectives | – Provide financial support and stabilize income in the event of crop failure. – Encourage innovative and modern farming practices. |
– Protect farmers from weather aberrations, ensuring swift compensation when weather thresholds are met or breached. |
| Unique Features | – “One Nation, One Scheme” concept. – Loss-based compensation linked to actual yield shortfall. |
– Trigger-based system; payouts depend on deviation from normal weather parameters (no extensive damage assessment). |
What is the role of FIAT in crop insurance schemes?
The Fund for Innovation and Technology (FIAT) has been established with a corpus of ₹824.77 crore to enhance the implementation of PMFBY and RWBCIS. There are various key roles:
- Technological Advancement: Funding technological initiatives aimed at improving the assessment of crop damage and expediting claim settlements.
- Research Support: Facilitating research and development studies that enhance the effectiveness of crop insurance schemes through innovative practices.
- Improving Accessibility: Aiding in the use of digital technologies for easier enrollment processes and expanding coverage among farmers.
Way forward:
- Strengthening Awareness and Accessibility: Increase farmer outreach through targeted awareness campaigns and simplify enrollment processes using digital platforms to ensure maximum participation in crop insurance schemes.
- Enhanced Technology Integration: Expand the deployment of advanced tools like remote sensing and automated weather monitoring to improve accuracy in loss assessment, and claim settlements, and minimize disputes.
Mains PYQ:
Q How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC IAS/2017)
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