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?

[UPSC Civil Services Exam – 2016 Prelims]

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (b)        

Explanation:

• The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme that aims to bring multiple stakeholders together on a single platform.
• It was launched in 2016 by the Ministry of Agriculture and Farmers Welfare. Under this scheme, farmers are required to pay a uniform premium, with different rates for various crop types.
• Under this scheme farmers will have to pay a uniform premium of 2% for all Kharif crops and 1.5% for all Rabi crops and 5% in the case of annual commercial and horticultural crops. (Hence statement 1 is incorrect)
• The PMFBY provides insurance coverage to farmers against post-harvest losses caused by factors such as cyclones and unseasonal rains, making statement 2 correct.