RAS question
Pradhan Mantri Fasal Bima Yojana (PMFBY) provides:
Correct answer: (D) Crop insurance against natural calamities.
Pradhan Mantri Fasal Bima Yojana provides crop insurance against crop loss and damage from non-preventable risks, including natural calamities.
Explanation
PMFBY is a comprehensive crop insurance scheme launched in 2016. The official PMFBY FAQ defines crop insurance as protection for agriculturists against financial losses from crop failure or loss caused by named or unforeseen perils beyond their control. Its objective is to support farmers who suffer crop loss or damage from unforeseen events and to protect them from production risks. Covered risks include natural fire and lightning, storm, hailstorm, cyclone, flood, inundation, landslide, drought, dry spells, pests and diseases. The farmer premium is capped at 2% for Kharif foodgrain and oilseed crops, 1.5% for Rabi foodgrain and oilseed crops, and 5% for annual commercial or horticultural crops; the remaining premium is shared by the Centre and State.
Why the other options are wrong
- (A) Minimum support price is a different policy instrument, while PMFBY provides crop insurance for crop loss and production risk.
- (B) Free seeds and fertilisers are not PMFBY benefits; the scheme concerns insurance cover and premium charges for notified crops.
- (C) Direct income support is associated with PM-KISAN, whereas PMFBY compensates insured crop losses rather than making income-support transfers.
Concept
Agricultural risk management under Indian Economy requires a clear distinction between insurance, price support and income support. RAS often tests farm schemes through close but differently designed welfare instruments.