India's PMFBY Crop Insurance Sees Remarkable Growth Over Two Years, Hits Six Year High Growth

India's flagship farm insurance scheme, the Pradhan Mantri Fasal Bima Yojana (PMFBY), has witnessed a significant upturn in farmer enrollments and key performance metrics in recent years. According to an agriculture ministry review, farmer enrollments have surged by 22% to a six-year high of 24.9 million for the current summer cropping season, covering a vast 50 million hectares.

Notably, premium rates have dropped by 32% this cropping season, resulting in substantial savings of ₹10,500 crore for farmers – the lowest level since the scheme's inception. This indicates successful negotiations between the government and insurance companies.

PMFBY is India's leading subsidized crop insurance initiative, where farmers' premiums range from 1.5% to 2%, depending on their crop cycles. The remaining premium is split evenly between the Central and state governments, with northeastern states benefiting from a 90% premium subsidy from the Centre.

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While the scheme has seen notable improvements, some issues remain, such as pending claims worth ₹2,761.10 crore until 2021-22. However, the government is actively addressing these concerns by releasing its share of the premium, even in cases where states are delayed.

CEO Ritesh Chauhan of PMFBY recently emphasized that continuous scheme evaluation has led to these positive outcomes, including cost reductions. Responding to farmer grievances regarding delayed compensation payouts, the Centre's revamped operational guidelines now facilitate faster settlements, demonstrating the government's commitment to timely support.

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Furthermore, the government is exploring the utilization of satellite-based technologies to expedite the assessment of crop damage and insurance claim processing. These efforts to enhance efficiency and accessibility within the scheme are laudable and stand to benefit India's farming community.

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