Budget 2024: Crop insurance has been given to 4 crore farmers under the PM Fasal Bima Yojana

Budget 2024 LIVE news: Finance Minister Nirmala Sitharaman on Thursday said the NDA government's flagship crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) has assisted 4 crore farmers till now. Last Budget, the FM had allocated Rs 13,625 crore for FY24.

“Crop insurance has been given to 40 million farmers under the PM Fasal Bima Yojana. This assists the annadata in producing food for the country and the world. 1,361 mandis integrated with 3 trillion trading volume," said FM Nirmala Sitharaman.

PMFBY aims to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests and diseases. Hailstorm has been included in post-harvest losses, besides unseasonal and cyclonic rainfall. Further, cloudburst and natural fire have been included in the localised calamities in addition to landslide and inundation.

PMFBY ensures minimal financial burden on the farmer as he or she is obligated to pay only 1.5 percent and 2 percent of total premium for the Rabi and Kharif seasons, respectively. It can be purchased from a select set of insurers such as Agriculture Insurance Company, state-run insurers and certain empanelled private players.

Unlike previous schemes, PMFBY is open for both loanee and non-loanee farmers. It covers food crops (cereals, millets and pulses), oilseeds as well as horticultural crops.

“The government has continued its support to farmers under the crop insurance facility and intends to further strengthen the same. This will ensure penetration and awareness around insurance in rural India thereby providing a boost to the insurance industry,” said Manoj Purohit, Partner & leader - FS Tax, Tax & Regulatory Services, BDO India.

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