Disadvantages & Flaws of PM Fasal bima yojana
The central government has launched various new schemes for the welfare of the rural farmers. The newly launched crop insurance scheme Pradhan Mantri Fasal Bima Yojana will be under the control and governed by the Ministry of Agriculture and Farmers welfare, government of India. This new crop insurance scheme is not up to that level having several risk factors in it.
- The total expenditure for this insurance scheme is about 9500 Crores which is mere waste. The premiums are very much lower for the farmers but it is difficult to provide the promises by the government. Since, the credit flow will not be ensured in the agriculture sector and the farmers will get encouraged by this scheme.
- As the post harvest losses are available up to the maximum of 14 days, those crops needed to be maintained for inspections by respective officials in order to process the claim procedure.
- Also the indemnity claim under this scheme is up to 25 percent of the sum-insured which will be low when compared with the loss faces by the farmers.
- The insurance coverage will get increased up to fifty percent from the existing level as the insuring income is not depending upon the crop for the farmers. The insurance coverage is provided if the farmer gets suffered due to the natural calamities as their crops get damaged when notified. The farmer’s income gets much more stabilized and they can continue the farming by all means. This will be a financial loss to the central government.
- There are certain notified crops which are considered under this crop insurance scheme and the insurance coverage will be beneficial only if the farmers planted those specific crops in their field.
- Though, the claim will be settled properly into the bank account of the farmers. However, there’s only one insurance company is available for this scheme for the entire state, which may affects cash flow.
No private companies get participated in such insurance schemes. This scheme is very well implemented on Area approach basis, which is nearly 23% of crops are eligible to be insured. On the other hand, the scheme will be beneficial for the minor crops in higher level.
By having proper cultivation and by following the protocols correctly, certain risks can be very easily recovered by the farmers on their own. The Loaned farmers will get the insured amount which is equal to scale of finance depending upon the planned crops are fixed only by the district committee members and cultivating the insured crops is the best options for the farmers to get a maximum threshold yield under this crop insurance scheme.