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.