Roadmap for Answer Writing
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Introduction
- Begin with a brief context of the vulnerability of Indian agriculture.
- Mention factors like dependency on monsoon, extreme weather conditions, and the impact of natural calamities.
- Provide a transition to crop insurance as a solution to these risks.
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Body
I. Vulnerability of Indian Agriculture:
- Discuss the unpredictability of weather, climate change, and frequent natural calamities.
- Use fact: According to the Economic Survey 2020-21, about 52% of India’s agricultural area is rain-fed, making it highly susceptible to the vagaries of nature (Source: Economic Survey 2020-21).
- Highlight the high risks of crop failure and financial instability for farmers.
II. Need for Crop Insurance:
- Explain how crop insurance can mitigate financial risks and stabilize farm income.
- Mention the role of crop insurance in encouraging farmers to adopt modern farming techniques.
- Fact: The National Crime Records Bureau (NCRB) report 2020 highlights that approximately 10,677 farmers died by suicide in 2020, with many cases linked to financial stress due to crop failure (Source: NCRB Report 2020).
- Link crop insurance to long-term agricultural sustainability and food security.
III. Salient Features of Pradhan Mantri Fasal Bima Yojana (PMFBY):
- Comprehensive Coverage: PMFBY provides coverage for pre-sowing, post-harvest, and localized risks like hailstorms and landslides.
- Low Premium: Farmers pay 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops.
- Technology Integration: Use of technology like smartphones, remote sensing, and drones for faster claim settlement.
- Fact: As per the Ministry of Agriculture, PMFBY insured over 60 million farmers in 2020, with claims worth ₹95,000 crores paid out since its inception in 2016 (Source: Ministry of Agriculture Report 2020).
- Public-Private Partnership: Involvement of both public and private insurers for better accessibility and efficiency.
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Conclusion
- Conclude by emphasizing the importance of crop insurance in ensuring economic security for farmers.
- Suggest ways to improve the scheme, such as reducing delays in claim settlements and increasing awareness among farmers.
This roadmap is structured to make your answer both detailed and readable. Use the facts and sources to back your points effectively.
Need for Crop Insurance in Indian Agriculture
Indian agriculture is highly vulnerable to the vagaries of nature such as floods, droughts, and unseasonal rains, which can significantly impact crop yields. Given the dependency of millions of farmers on agriculture for their livelihood, crop insurance becomes crucial for:
Crop insurance provides financial protection against losses due to natural calamities, reducing the economic burden on farmers. For example, the 2019 Kerala floods caused massive damage to crops, and insurance helped affected farmers recover.
It aids in risk management by providing a safety net that encourages farmers to invest in new technologies and practices without the fear of total loss. The 2020-21 rabi season saw significant claims paid out under crop insurance schemes due to adverse weather conditions.
By offering compensation for crop losses, insurance helps maintain income stability and ensures continued agricultural activity even after a disaster.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Launched in 2016, the Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to provide comprehensive crop insurance coverage. Its salient features include:
PMFBY covers losses due to natural calamities, pests, and diseases. It also includes preventive measures for better crop health.
Farmers pay a low premium, while the government subsidizes the rest. For example, farmers pay only 1.5% of the sum insured for kharif crops, while the government covers the remaining cost.
The scheme incorporates technology for timely claims processing and assessment. Use of satellite imagery and drone technology has improved the efficiency of loss assessment and claim settlements.
PMFBY aims to be transparent and easily accessible, with a focus on reaching out to small and marginal farmers.
Conclusion
Crop insurance is essential for mitigating the risks associated with agricultural production in India. The PMFBY enhances the resilience of farmers by providing comprehensive coverage, affordable premiums, and a streamlined claims process, thereby supporting agricultural stability and sustainability.
Model Answer
Introduction
Indian agriculture is excessively dependent on monsoons, with only 35% of the total area under cultivation being irrigated as of 2010, according to the World Bank. This heavy reliance on monsoon rains, coupled with fluctuations and natural calamities such as droughts, floods, and hailstorms, has severely impacted farmers’ livelihoods. Even in years of abundant production, farmers often face price volatility, making crop insurance essential for stabilizing their income and production.
Need for Crop Insurance
Recognizing these needs, the government introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) to replace the outdated National Agriculture Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNIAS), aiming to cover 47% of farmers within a year.
Salient Features of PMFBY
Conclusion
The increasing frequency of climate-induced extreme weather events and market fluctuations has heightened the distress among farmers, underscoring the urgent need for effective crop insurance. The PMFBY represents a significant step towards safeguarding farmers’ interests and promoting sustainable agricultural practices in India.