Government to Invest ₹30,000 Crore to Expand Crop Insurance Portal Coverage: A Boon for Farmers

The Indian government’s investment of ₹30,000 crore (approximately US$ 3.60 billion) in expanding the Pradhan Mantri Fasal Bima Yojana (PMFBY) portal represents a significant commitment to enhancing the country’s agricultural resilience and supporting farmers. This expansion is intended to transform the PMFBY site into a comprehensive platform that extends insurance coverage beyond crops to include assets like ponds, tractors, animals, and palm trees​​.

This initiative is backed by the AIDE app, launched in July to facilitate door-to-door enrollment, thereby making crop insurance more accessible and convenient for farmers. The app aims to cover 40 million farmers under non-subsidized plans, in addition to those enrolled under the subsidized PMFBY scheme. The transition from a portal to a platform is designed to offer insurance coverage for both subsidized and non-subsidized agricultural assets, providing farmers with a broader range of insurance options​​.

The PMFBY, a central government-sponsored crop insurance plan, has recently been revamped with the introduction of new technological tools such as YES-Tech, WINDS portal, and AIDE app. These initiatives mark a significant development in crop insurance in India. Following these reforms, the insured acreage under PMFBY increased by 12% in 2022-23, covering more than 49.7 million hectares. It is anticipated to reach a record 57.5-60 million hectares in the 2023-24 Kharif season​​.

This investment in the crop insurance portal not only aims to meet current insurance needs but also serves as a sandbox under PMFBY to develop new schemes based on market demand. This approach is expected to cater to a broader spectrum of insurance requirements beyond just crop insurance​​.

The Crop Insurance Portal, first launched in 2016, was designed to modernize and streamline the agricultural insurance system in India. It provides farmers with a platform to access information, register claims, and receive compensation for crop losses. Given that India has a predominantly agrarian economy, with over half of its population dependent on agriculture, crop insurance is a critical component of government policy. This historical context is particularly important for students and aspirants preparing for various government exams​​.

In summary, the Indian government’s ₹30,000 crore investment to expand the Crop Insurance Portal is a strategic step towards strengthening agricultural resilience, mitigating farmer distress during natural calamities and crop failures, and modernizing agricultural practices. This initiative has wide-reaching implications, not only for the agricultural sector but also for various government job aspirants and students preparing for civil services and other examinations​​.



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