Q10. Given 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 (PMFBY).

Model Answer:

Introduction

Crop insurance protects farmers against losses due to natural disasters, ensuring financial stability. In India, this is crucial due to the high vulnerability of agriculture to climate variability. 

Body

Need for Crop Insurance

1. Risk Mitigation: Crop insurance mitigates risks from unpredictable weather events, ensuring farmers can recover financially from crop failures due to droughts, floods, or pests.
2. Income Stability: It provides a safety net, helping farmers maintain stable incomes even during adverse conditions, reducing their vulnerability to poverty and ensuring food security.
3. Encouraging Investment: With insurance coverage, farmers are more likely to invest in modern agricultural practices, technologies, and inputs, enhancing productivity and sustainability.
4. Credit Access: Crop insurance facilitates easier access to credit, as financial institutions are more willing to lend to insured farmers, promoting agricultural investment and growth.
5. Promoting Agriculture Insurance Culture: A robust insurance framework fosters a culture of risk management among farmers, making them more resilient to natural calamities and market fluctuations. 

Salient Features of Pradhan Mantri Fasal Bima Yojana (PMFBY)

1. Comprehensive Coverage: PMFBY covers a wide range of risks, including natural calamities, pests, and diseases, ensuring holistic protection for farmers’ crops throughout the growing season.
2. Affordable Premiums: The scheme offers subsidized premiums, making it accessible for farmers, with the government absorbing a significant portion of the costs, reducing farmers' financial burden.
3. Fast Claims Settlement: PMFBY emphasizes timely claim settlements, with a streamlined process that ensures farmers receive compensation promptly following crop losses due to insured events.
4. Technology Integration: The use of technology, including remote sensing and drones, enhances risk assessment and claim verification, improving the accuracy and efficiency of the insurance process.
5. Inclusivity: The scheme is inclusive, covering small and marginal farmers, ensuring equitable access to insurance and promoting financial security for the most vulnerable agricultural communities.

Conclusion

Crop insurance, particularly through schemes like PMFBY, is essential for safeguarding Indian agriculture, enhancing resilience against natural disasters, and ensuring the long-term sustainability of farmers’ livelihoods. 

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