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PMFBY & RWBCIS Extended Until 2025-26 with ₹69,515 Crore Boost

PMFBY & RWBCIS Extended Until 2025-26: A ₹69,515 Crore Boost to Agricultural Insurance

India’s agrarian economy is vulnerable to climate change, erratic weather, and natural calamities. To address these challenges and secure farmers’ livelihoods, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS). With their extension until 2025-26 and a ₹69,515 crore allocation, these schemes mark a transformative step toward ensuring agricultural sustainability.

This eBook is tailored for UPSC aspirants, highlighting the schemes’ significance, structure, and impact within the framework of agricultural reforms, rural development, and social justice.

Background of PMFBY and RWBCIS

  1. Pradhan Mantri Fasal Bima Yojana (PMFBY)
    Launched in 2016, PMFBY aims to provide comprehensive crop insurance to farmers, protecting them from financial losses due to crop failure caused by unforeseen events.

    • Objectives:
      • Stabilize farmers’ income post-crop loss.
      • Encourage adoption of modern agricultural techniques.
      • Reduce farmers’ dependence on informal credit.

  2. Restructured Weather Based Crop Insurance Scheme (RWBCIS)
    RWBCIS focuses on mitigating risks arising from adverse weather conditions, such as unseasonal rainfall, drought, or extreme temperatures, which directly affect crop yields.

    • Objectives:
      • Offer coverage for weather risks at critical crop stages.
      • Complement PMFBY by addressing climate-specific challenges.

Key Highlights of the Extension (2025-26)

  1. Increased Budgetary Allocation

    • ₹69,515 crore has been allocated, reflecting the government’s commitment to safeguarding the agricultural sector.
    • It aims to enhance accessibility and inclusion, particularly for small and marginal farmers.

  2. Enhanced Coverage

    • PMFBY: Covers 28 million farmers annually.
    • RWBCIS: Focuses on regions prone to extreme weather.
    • Extension ensures continued coverage for both schemes, prioritizing vulnerable agricultural zones.

  3. Technological Advancements

    • Digitization: Integration of satellite imagery, drone technology, and artificial intelligence for efficient damage assessment and claim settlement.
    • Crop Insurance App: Simplifies enrollment, grievance redressal, and claim tracking.

  4. Voluntary Participation

    • Farmers have the option to choose their participation, ensuring greater inclusivity and flexibility.

  5. Improved Premium Sharing

    • Premium subsidies are shared between the Central and State governments, with farmers contributing a nominal percentage:
      • 2% for Kharif crops.
      • 1.5% for Rabi crops.
      • 5% for commercial and horticultural crops.

Impact of the Schemes

Economic Stability for Farmers
  • By covering risks associated with crop failure, the schemes reduce financial stress, enabling farmers to reinvest in agriculture.
Reduction in Rural Distress
  • Mitigation of losses has led to a decrease in farmer suicides and rural indebtedness.
Encouragement of Modern Farming Practices
  • The assurance of financial security motivates farmers to adopt high-yielding seeds, advanced irrigation techniques, and climate-resilient crops.
Increased Institutional Credit
  • Banks and financial institutions are more willing to extend credit to insured farmers, fostering rural economic growth.

Challenges in Implementation

  • Delayed Claim Settlement
    Despite technological interventions, delays in processing and settling claims continue to be a bottleneck.

  • Awareness Gap
    Many farmers, particularly in remote regions, remain unaware of the schemes’ benefits and enrollment process.

  • State-Level Issues
    Some states have opted out of PMFBY, citing high premium costs and administrative challenges, leading to reduced coverage.

  • Private Sector Involvement
    Private insurance companies prioritize profit margins, which may conflict with the schemes’ social welfare objectives.

Recent Reforms to Address Challenges

  1. Streamlined Claim Settlement

    • Time-bound claim processing with the use of smart technologies like AI and blockchain.
    • Deployment of Crop Cutting Experiments (CCE) using drones for accurate yield data.

  2. Awareness Campaigns

    • Intensive IEC (Information, Education, and Communication) campaigns to increase awareness among farmers.

  3. State Cooperation

    • Negotiations with states to address their concerns and ensure broader implementation.

  4. Customized Insurance Products

    • Tailored products to address region-specific risks and cropping patterns.

Significance for UPSC Aspirants

  1. Agriculture and Rural Development

    • Understanding the schemes aids in answering questions related to agricultural reforms, rural distress, and government welfare programs.

  2. Social Justice and Governance

    • These schemes reflect the government’s commitment to social equity and inclusive governance.

  3. Essay and Ethics

    • PMFBY and RWBCIS are exemplary case studies for essays on agriculture, rural development, and disaster management.
    • They also illustrate ethical governance principles, such as empathy and equity.

  4. Environment and Climate Change

    • The schemes’ focus on climate resilience aligns with sustainable development goals (SDGs), offering insights into climate adaptation strategies.

Mock Questions for Practice

  1. Prelims

    • Consider the following statements about PMFBY:
      1. Farmers contribute a uniform premium of 5% for all crops.
      2. The scheme covers only major food crops.
        Which of the above statements is/are correct?
      • a) 1 only
      • b) 2 only
      • c) Both 1 and 2
      • d) Neither 1 nor 2

  2. Mains

    • Discuss the significance of PMFBY and RWBCIS in ensuring agricultural sustainability in India. What challenges do these schemes face, and how can they be addressed?

  3. Essay Topics

    • “Securing Farmers, Securing India: The Role of Agricultural Insurance.”
    • “Climate Change and Indian Agriculture: Navigating Risks with Innovation and Policy.”

Conclusion

The extension of PMFBY and RWBCIS until 2025-26 with a ₹69,515 crore boost underscores the government’s commitment to securing the agricultural sector against climate risks and economic instability. For UPSC aspirants, these schemes provide a comprehensive understanding of governance, rural development, and climate resilience, offering valuable insights into addressing India’s agrarian challenges.

Through effective implementation and continuous reforms, these schemes have the potential to transform India’s agricultural landscape, ensuring prosperity and sustainability for millions of farmers.

Maximize the benefits of mock tests for IAS and KAS preparation with guidance from Amoghavarsha IAS Academy . For more details, visit https://amoghavarshaiaskas.in/.

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