A Study of Progress and Status of Pradhan Mantri Fasal Bima Yojana (PMFBY)

Abstract

Agriculture continues to be the backbone of Indian economy, but the dependency of agriculture on monsoon and the uncertainty of monsoon are well known due to which India is always in the grip of Natural Calamities. India is the second most flood-affected country in the world after Bangladesh. Due to variability, uncertainty and long dry spells, about 68% of the cultivable area of the country remains drought-affected and 52% of the country's cultivated land is rain-fed. On an average, one year in every 5 years is drought-affected. One-third of the country's area opted less than 75 cm of rainfall, which is insufficient for normal productivity of crops. Sometimes the conditions of drought and flood are so devastating that they even break the backbone of the farmers. Apart from this, there are many external factors that affect farming, and cause extensive crop damage. In such a situation, providing the farmers of the country with options to deal with agricultural disasters is the most important and for this, agricultural insurance is the most powerful institutional tool to protect farmers from weather uncertainty and provide financial security. The paper examines the Progress and Status of the PMFBY.