Crop Insurance in India: A Study of PMFBY

Abstract:-

More than one-third of the world's undernourished children live in India, which ranks 101th out of 116 countries in the Global Hunger Index 2021. Agriculture is a risky business due to production insecurity and market risks, which affect farmers' income levels and, as a result, food security. The purpose of this review was to comprehend the various features of various crop insurance policies in India as well as to investigate the effects of the Pradhan Mantri Fasal Bima Yojana (PMFBY) on Indian farmers. In terms of the number of farmers insured, the area insured, claims paid, and total farmers benefited, agricultural insurance coverage under PMFBY has remained low. The PMFBY had significantly lower beneficiary and claim premium ratios when compared to other schemes. Farmers' premiums have a significant effect on the number of farmers insured over time, according to the multiple regression analysis, but subsidies have no effect on farmers' insurance participation. The PMFBY's major flaws are claim settlement delays, system complexity, and farmer apathy. Farmers may become more aware of these programmes if they use digital media more frequently.