Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (Not more than 200 words)

Agriculture is best assessed through its developmental, institutional and implementation dimensions, with equity and resilience as the governing tests.

Indian agriculture faces drought, floods, cyclones, hail, pests and disease, while smallholders have limited savings and weak access to formal credit. Crop insurance protects consumption, prevents distress sales and stabilises farm investment after yield loss.

PMFBY was launched in 2016 with low uniform farmer premiums: 2% for kharif foodgrain and oilseed crops, 1.5% for rabi foodgrain and oilseeds, and 5% for annual commercial or horticultural crops. The balance premium was subsidised by governments.

The scheme covered notified crops and areas, used area-based yield assessment, and included prevented sowing, post-harvest losses for a limited period and localised calamities, subject to notification and evidence. Technology such as smartphones and remote sensing aimed to improve assessment and settlement.

Effectiveness requires timely enrolment, transparent unit areas, adequate crop cutting, prompt claims, awareness and grievance redress. Improve actuarial data, tenant and sharecropper access, last-mile verification and insurer accountability; insurance must complement irrigation, resilient seeds, advisories and disaster relief.

Keywords: agriculture; risk management; crop insurance; PMFBY 2016