Fasal Bima Yojana

Context:

The Union Agriculture Ministry announced that Andhra Pradesh has decided to rejoin the crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season.

Constituents of the Scheme:

• It is a crop Insurance Scheme launched in 2016.It is administered by the Ministry of Agriculture. It replaced previous insurance schemes National Agricultural Insurance Scheme (NAIS) as well as the Modified NAIS.

• Objective: Aims to provide insurance coverage and financial support to the farmers in the event of crop failure, stabilizing the income of farmers to ensure their continuance in farming. Scheme also helps to encourage farmers to adopt innovative and modern agricultural practices along with ensuring flow of credit to the agriculture sector.
• Premium: 2% for all Kharif crops, 1.5% for all Rabi crops and 5% for annual commercial and horticultural crops are to be paid by the farmers, remaining premium will be shared by centre and states.