10. Give the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMGBY).

Indian Agriculture has been called as a “gamble of monsoon”. It denotes the excessive dependence of agriculture on monsoon. Most rivers in India are fed by monsoon rains. Delay or failure of monsoon has a huge impact on agriculture. According to World Bank only 35 % of total area under cultivation in India was irrigated by 2010.

Monsoon fluctuations and other natural calamities such as natural fires, typhoons, hail storms, etc have played havoc in Indian farmer’s lives. These conditions have left the farmer at the mercy of nature.

Even when there is bountiful production, the farmer has fallen victim to price fluctuations. To decrease such uncertainties and provide a reliable source of income and protection to the livelihood of farmer there is a pressing Need for crop insurance.

    Benefits of crop insurance are,

• Yield protection: This provides for protection in case the production falls or decreases. They also provide protection of post harvest losses.
• Revenue protection: It provides for protection in case of price fluctuations. Often, during a bumper harvest year the prices crash due to increased supply. Revenue protection offers the farmer a guaranteed ‘minimum assured income’.
• Group Risk Protection and Group Risk income Protection:    It provides for a safety net and protects from any disastrous losses.

Since 2000, may crop insurance schemes have been launched by Government. The latest scheme Pradhan Mantri Fasal Bima Yojana(PMFBY) was launched in 2016.

Salient features of PMFBY:

• One crop one price
• Uniform premium rate of 2 % for Karif crops,1.5 % for Rabi crops and 5 % for commercial and horticulture crops.
• Preminum paid by farmers are very low, Government pays the remaining premium.
• Mandatory insurance cover for farmers taking loans.
• Full protection is provided from natural fires, storm, cyclone, typhoon, tempest, hailstorm, tornado, hurricane, drought, flood, landslides, dry spells, pest, disease, etc
• Mandatory use of technology. Use of smart phones, drones, Remote Sensing to capture images during each stage and to expedite compensation in case of claims.
• Scheme is implemented on Area Approach basis. The area notified is village or above with a homogenous crop cultivation and risk assessment.
• All farmers growing notified crops in notified will be covered.

Climate change induced extreme weather conditions and market fluctuations have increased farmer distress. The rising number of farmer suicides and and  labour  migration underscore the urgent need for providing Insurance cover to safeguard farmer interests.