- Punjab plans to join Pradhan Mantri Fasal Bima Yojana (PMFBY) after severe flood damage to crops in 23 districts.
- PMFBY offers fixed premium rates with costs shared between the Centre and states, providing full crop risk coverage.
- Since 2016, PMFBY has paid Rs 1.82 lakh crore in compensation, helping farmers during natural disasters like floods.
Punjab is thinking about joining the Pradhan Mantri Fasal Bima Yojana to support farmers affected by recent floods. The state has seen major crop losses, affecting nearly 0.4 million hectares out of its 3.2 million hectare crop area. This scheme, known for its subsidised crop insurance, aims to give financial relief and stability to farmers. Keywords related to this topic include PMFBY, crop insurance, flood relief, and Punjab agriculture.
Punjab’s agriculture has been badly affected by floods caused by heavy rainfall in the northern region. The state government has declared all 23 districts as flood-hit, with standing crops badly damaged. To help farmers, Punjab is now planning to join the PMFBY scheme, which offers a safety net through crop insurance.
Flood Impact on Punjab’s Agriculture and Current Relief Efforts
Recent floods have damaged about 0.4 million hectares of crop area in Punjab. The state government is focused on giving immediate relief to farmers who have suffered losses. This includes financial help and other support to help farmers recover from the flood damage.
Financial Challenges and Punjab’s Past Hesitation to Join PMFBY
Punjab had earlier hesitated to join PMFBY because of worries about the financial burden on the state budget. The state’s strong irrigation system also lowered the perceived risk of crop failure compared to rainfed areas. In November 2022, Punjab announced plans to join PMFBY but later decided to create its own crop insurance scheme. However, the recent flood damage has made the state rethink joining the central scheme.
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How Pradhan Mantri Fasal Bima Yojana Works and Its Benefits
PMFBY offers full risk coverage for crops from before sowing to after harvest. Farmers pay a fixed premium based on the crop type, while the rest of the premium cost is shared equally between the Centre and the states. This shared premium model makes the scheme highly subsidised and easy for farmers to access.
Premium Rates and Coverage Details Under PMFBY
| Crop Type | Fixed Premium Rate | Premium Sharing |
|---|---|---|
| Rabi Crops | 1.5% of sum insured | Balance shared equally between Centre and state |
| Kharif Crops | 2% of sum insured | Balance shared equally between Centre and state |
| Cash Crops | 5% of sum insured | Balance shared equally between Centre and state |
For north-eastern states, the premium sharing ratio is 9:1 between Centre and states, but Punjab follows the standard 50:50 sharing model.
States’ Participation Trends and Punjab’s Previous Crop Insurance Plans
Since its start in kharif 2016, 27 states and union territories have used PMFBY in different seasons. Some states like Bihar, Telangana, Andhra Pradesh, Jharkhand, West Bengal, and Gujarat had opted out due to money problems, though Andhra Pradesh and Jharkhand have re-joined. Punjab initially planned its own crop insurance scheme but is now thinking about PMFBY again because of recent flood challenges.
Why Crop Insurance is Important for Punjab Farmers During Floods
“If the crop insurance scheme was in place, the farmers of Punjab, who have lost nearly four lakh acres of crops due to floods, would have received timely compensation through insurance claims, helping them meet their daily needs,” said Ranjit Singh Jossan, vice president of the Basmati Rice Millers and Exporters Association, Punjab.
Crop insurance under PMFBY can provide financial stability to Punjab’s farming economy by making sure farmers get compensation quickly after natural disasters like floods.
Compensation Figures Under PMFBY Since 2016
| Parameter | Amount (Rs Crore) |
|---|---|
| Total Compensation Paid to Farmers | 1,82,000 |
| Total Premiums Collected | 35,864 |
These numbers show how well the scheme works in giving financial support to farmers, paying out compensation five times the amount collected in premiums.
If you are a farmer in Punjab or interested in crop insurance, watching the state’s decision to join PMFBY could be very important for your financial security in future farming seasons.