Crop Insurance in India: A Review of Pradhan Mantri Fasal Bima Yojana (PMFBY)
Tiwari, R., Khem Chand, Anjum, B. (2020). Crop insurance in India: a review of pradhan mantri fasal bima yojana (PMFBY). FIIB Business Review, 9(4), 249-255, https://doi.org/10.1177/2319714520966084
Posted: 3 May 2021
Date Written: November 06, 2020
Farmers in India have been the victim of systemic neglect and live a marginalized life. Crop failure due to natural calamities and unfavourable climatic conditions puts farmers in a challenging situation leading to extreme hopelessness and suicides. This article provides an overview of the crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY) launched in India by Mr. Narendra Modi in 2016. PMFBY has poor state support, unviable subsidy model, delayed claim settlement and skewed benefit pattern. A technology-enabled demand-driven approach is recommended. Crop insurance should be delinked from political affiliation. Velocity, variety and verifiability in PMFBY will make crop insurance scheme work better for farmers than insurers, administrators and politicians.
Keywords: Crop insurance, farmers, suicides, India, Pradhan Mantri Fasal Bima Yojana (PMBFY), Mr Narendra Modi, subsidy
JEL Classification: G22, Q14
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