Crop Insurance in India: A Review of Pradhan Mantri Fasal Bima Yojana (PMFBY). Issue 4 (December 2020)

• Record Type: Journal Article
• Authors: Tiwari, Rajesh; Chand, Khem; Anjum, Bimal
• Is Part Of: FIIB business review. Volume 9:Issue 4(2020)
• Page Start: 249
• Page End: 255
• Publication Date: 2020-12
• Subjects: Crop insurance -- farmers -- suicides -- India -- Pradhan Mantri Fasal Bima Yojana (PMBFY) -- Mr Narendra Modi -- subsidy; Business -- Periodicals; Economics -- Periodicals; Business; Economics; Periodicals; 650
• DOI: 10.1177/2319714520966084
• Languages: English
• ISSNs: 2319-7145

Abstract

Farmers in India have been the victim of systemic neglect and live a marginalized life. Crop failure due to natural calamities and unfavourable climatic conditions puts farmers in a challenging situation leading to extreme hopelessness and suicides. This article provides an overview of the crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY) launched in India by Mr. Narendra Modi in 2016. PMFBY has poor state support, unviable subsidy model, delayed claim settlement and skewed benefit pattern. A technology-enabled demand-driven approach is recommended. Crop insurance should be delinked from political affiliation. Velocity, variety and verifiability in PMFBY will make crop insurance scheme work better for farmers than insurers, administrators and politicians.