Question 34 from UPSC CSE 2016 - Current
Affairs

Question

With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements:
1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.
Which of the statements given above is/are correct?

IASCODEX · Accepted Answer

Correct Option: B. 2 only

Strategy: - **For Statement 1:** Recall the PMFBY premium structure to disprove the claim of a uniform 2% premium. Premiums vary by crop season and type (Kharif 2%, Rabi 1.5%, commercial/horticultural 5%).
- **For Statement 2:** Recall the specific provisions for post-harvest losses. The scheme covers losses from cyclones and unseasonal rains for up to 14 days after harvest, confirming the statement.

Key Info: The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, is a crop insurance scheme approved by the Union Cabinet. It replaced the existing National Agricultural Insurance Scheme (NAIS) and Modified NAIS.

**Premium Structure:** Under PMFBY, farmers pay a uniform premium for different crop categories:
- **Kharif crops:** 2% of the sum insured.
- **Rabi crops:** 1.5% of the sum insured.
- **Annual Commercial and Horticultural crops:** 5% of the sum insured.
The balance premium is paid by the Government to ensure full insured amount is provided to the farmers against crop loss on account of natural calamities.

**Coverage:** The scheme aims to provide insurance coverage and financial support to farmers in the event of failure of any of the notified crops as a result of natural calamities, pests, and diseases. It covers:
- **Yield Losses:** Due to non-preventable risks, such as natural fire and lightning, storm, hail, cyclone, typhoon, tempest, hurricane, tornado, flood, inundation, landslide, drought, dry spells, pests, and diseases.
- **Localized Calamities:** Loss assessment due to hailstorm, landslide, inundation, cloud burst, and natural fire is done on an individual farm basis.
- **Post-Harvest Losses:** Coverage is available for up to a maximum period of 14 days from harvesting for those crops which are kept in 'cut & spread' condition to dry in the field against specific perils of cyclone/cyclonic rains and unseasonal rains throughout the country.
- **Prevented Sowing/Planting:** If a farmer is prevented from sowing/planting due to adverse weather conditions, they are eligible for compensation.

**Key Features:**
- Voluntary for all farmers, but mandatory for farmers availing institutional credit for notified crops in notified areas.
- Use of technology like satellite imagery, remote sensing, drones, and AI for accurate assessment of crop losses and quick settlement of claims.

IASCODEX · Answer

Option A: 1 only

IASCODEX · Answer

Option C: Both 1 and 2

IASCODEX · Answer

Option D: Neither 1 nor 2