Syllabus
GS 3: Transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers.
Context:
As per the Ministry of Agriculture and Farmers Welfare, 97% of the total claims filed under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) have been resolved nationwide.
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Goa, Chhattisgarh, Telangana and Tamil Nadu have successfully completed 100% settlement of claims.
Tripura, Andaman and Nicobar Islands, Andhra Pradesh, and Sikkim have recorded claim settlement rates ranging between 91% and 51%.
Andhra Pradesh has the highest (₹1,842 crore) pending crop insurance claims.
- The state withdrew from PMFBY in Kharif 2020 and rejoined in Kharif 2022, disrupting the insurance mechanism.
A.P is followed by Maharashtra with ₹631 crore in unsettled claims, and then Rajasthan with ₹478 crore.
- Maharashtra farmers, have filed the highest claims under PMFBY and RWBCIS over the past six years, accounting for ₹33,259 crore, nearly 24% of the total claims reported across the country.
With ₹1.38 lakh crore worth of claims reported and ₹1.34 lakh crore already disbursed, the PMFBY and RWBCIS schemes have successfully scaled up over the past 6 years.
Despite the scale, uneven performance across states reveals the need for systemic reforms and greater accountability.
Top States by Total Claims Filed (Past Six Years)
| State | Total Claims Filed (₹ crore) |
| Maharashtra | 33,259 |
| Rajasthan | 25,284 |
| Madhya Pradesh | 22,749 |
| Karnataka | 11,346 |
| Tamil Nadu | 9,067 |
Pradhan Mantri Fasal Bima Yojana (PMFBY)
- It was launched in 2016 as a centrally sponsored scheme. It is available for all States/UTs and is voluntary for the States as well as farmers.
- States/UTs are free to subscribe under the scheme keeping in view their risk perception and financial considerations etc.
- It functions under the administrative control of the Union Ministry of Agriculture & Farmers Welfare but it is implemented by the State Government.
- As of February 2024, 27 States/ Union Territories (UTs) have implemented the scheme in one or more seasons since inception.
- The scheme envisages the use of improved technology including satellite imagery, drones, Unmanned Aerial Vehicles (UAV) and remote sensing.
- It aims to promote the use of remote sensing and other related technology for Crop Cutting Experiments (CCEs) planning, yield estimation, loss assessment, assessment of prevented sowing areas and clustering of districts.
- As per provisions of PMFBY guidelines, the premium share of the farmer is capped at 2% for Kharif crops, 1.5% for Rabi Crops and 5% for commercial/Horticultural crops.
- To further improve the grievance redressal mechanism, Krishi Rakshak Portal and Helpline (KRPH) has been developed.
The Restructured Weather-Based Crop Insurance Scheme (RWBCIS)
- To overcome the shortcoming under erstwhile National Agriculture Insurance Scheme (NAIS)/, a pilot Weather Based Crop Insurance Scheme (WBCIS) was launched in 20 states (as announced in the Union Budget 2007-08).
- WBCIS was implemented as a full-fledged component scheme of the National Crop Insurance Programme (NCIP) from Rabi 2013-14 season to Rabi 2015-16.
- The scheme was restructured on the basis of premium and administrative structure on the lines of PMFBY and is available in the country from Kharif 2016 as Restructured WBCIS under the administrative control of the Ministry of Agriculture and Farmers Welfare.
- It aims to protect farmers from financial losses due to adverse weather conditions.
- RWBCIS uses weather parameters as “proxy‟ for crop yields in compensating the cultivators for deemed crop losses whereas PMFBY covers crop losses based on yield risk.
UPSC Mains Practice Question
Q: Despite achieving a high overall claim settlement rate under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS), disparities in implementation across states highlight deep-rooted systemic issues. Critically examine the challenges in the implementation of these schemes.