UPSC Prelims 2016 Q21: Indian Economy – Agriculture & Rural Development
With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:
1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop
they cultivate in any season of the year.
2. This scheme covers post - harvest losses arising out of cyclones and unseasonal rains.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (b) 2 only
Explanation
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Launched from Kharif 2016.
It replaced the earlier NAIS and Modified NAIS crop insurance schemes.
| Statement | Verdict | Fact |
|---|---|---|
| 1. Farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year | Incorrect | The premium differs by season and crop |
| 2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains | Correct | Cover lasts up to 14 days after harvest for crops left to dry in the field |
Farmer's premium:
| Crop | Premium |
|---|---|
| Kharif food and oilseed crops | 2 percent |
| Rabi food and oilseed crops | 1.5 percent |
| Commercial and horticultural crops | 5 percent |
The rest of the premium is shared by the Centre and the State.
Answer: (b) 2 only.
Why each option is right or wrong
- (a) Incorrect. The premium is not uniform: 2, 1.5 or 5 percent by season and crop.
- (b) CORRECT. The scheme covers post-harvest losses from cyclones and unseasonal rains.
- (c) Incorrect. Statement 1 is false; two percent applies only to Kharif crops.
- (d) Incorrect. Statement 2 is true; post-harvest losses are covered.
Key point
PMFBY (2016): farmer's premium 2 percent Kharif, 1.5 percent Rabi, 5 percent commercial and horticultural crops; covers post-harvest losses for 14 days.
Remember
PMFBY premium: 2, 1.5 and 5 percent; post-harvest cover.
Common mistakes
- Accepting 'uniform premium'; there are three rates.
- Thinking insurance ends at harvest; it continues for 14 days.
- Forgetting that localised calamities such as hailstorm are also covered.
Exam tip
Remember 2 - 1.5 - 5: Kharif, Rabi, commercial crops.
Sources
- Department of Agriculture and Farmers Welfare — Pradhan Mantri Fasal Bima Yojana operational guidelines
- Press Information Bureau — Cabinet approves Pradhan Mantri Fasal Bima Yojana (13 January 2016)