Crop Insurance Scheme- Get Agricultural Benefits and Assured Financial Stability

Agriculture Insurance also called Crop Insurance plays a dynamic role in the agriculture sector. The main aim of the crop insurance scheme assures farmers gain an increase in farm income, provide stability and increase farm production. It also allows farmers to make investments against heavy crop damage or damage caused due to the occurrence of natural disasters.

The agricultural sector holds significant demographic and economic importance in India, encompassing a wide range of activities. Any slight decline in agricultural production has far-reaching consequences on the entire economy. The fluctuations in production are primarily influenced by adverse factors such as pest infestation and variations in weather parameters like temperature and humidity. Therefore, it is crucial to safeguard crop yields and minimize losses associated with them.

Objectives of the Agriculture Insurance Scheme

The following are different objectives that Agriculture Insurance Scheme provides:-

Provide Financial Security: Small-hold farmers and marginal farmers have to face an enormous issue when there is heavy crop loss due to natural disasters, unforeseen events, or pest occurrences. Therefore through the agriculture Insurance Scheme, farmers can achieve financial stability.

Ensure Credit Availability: By mitigating the risk of crop failure, the scheme helps in ensuring the availability of credit to farmers. It increases their creditworthiness and enables them to access loans from financial institutions.

Increase Agricultural Productivity: The scheme also aims to provide timely compensation for crop losses. Therefore this helps to overcome farmers' financial burden and encourage them to invest in good farm practice.

Encouraging Risk Management: The scheme aims to promote risk management in agriculture by encouraging farmers to adopt modern agricultural practices, use high-quality inputs, and implement efficient crop management techniques.

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Crops Cover under Agriculture Insurance Scheme

Following are the crops that come under Agriculture Insurance Scheme:-

Food Crops- These include wheat, maize, millet, rice, and pulses.

Horticulture Crops- These include vegetables, flowers, and those horticulture crops that are susceptible to weather variations, and pest attacks and provide benefits to farmers.

Cash Crops- They include cotton, sugarcane, jute, tobacco, and oilseeds and are covered under the Agriculture Insurance Scheme. These crops have significant economic value, and their coverage ensures income stability for farmers.

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Schemes under Agriculture Insurance Scheme

The following are some of the important schemes covered under Agriculture Crop Insurance:-

Weather-Based Crop Insurance Scheme (WBCIS)

This scheme aims to mitigate severe problems faced by marginal farmers due to financial burden, and crop loss due to adverse weather conditions which include severe rainfall, temperature, humidity, frost, etc.Therefore this scheme provides insurance against heavy crop loss damage.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

The scheme launched by the Ministry of Agriculture and Farmers Welfare aims to provide financial support, compensate money, ensure income stabilization, and encourage farmers to adopt innovative modern agricultural practices.

Unified Package Insurance Scheme (UPIS)

UPIS offers a comprehensive coverage package that includes both crop insurance and personal accident insurance for farmers. It aims to provide holistic protection to farmers against multiple risks. 

Modified National Agricultural Insurance Scheme (MNAIS)

This scheme aims to aid them financially and help them against failure of any notified crop due to uncertain circumstances. It encourages farmers to adopt high-quality inputs and adopt modified farming technologies.

Also Read:- All Agricultural Insurance Schemes Provided by Indian Government: An Overview