Analysis of farmers’ perception for enhancement of crop insurance scheme

Uneven distribution of monsoon leads to yield/price volatility and hence increases farmers’ exposure to risk and uncertainty. In this scenario of high risk and uncertainty of rain-fed agriculture, allocating risk is an important aspect of decision-making for farmers. The risk burden of the farmers can be reduced through crop insurance, which is primarily a way of protecting farmers against the losses in crop production. Crop insurance spreads crop losses over space and time, provides social security to the farmers, helps in maintaining their dignity, offers self-help, and encourages large investments in agriculture for improving crop yield and increasing agricultural production. In this direction, Pradhan Mantri Fasal Bima Yojana (PMFBY), scheme has been implemented since Kharif 2016. Its main purpose was to provide insurance coverage to farmers suffering crop loss due to any natural calamities and other risks for sustainable income. This ambitious scheme is open for all types of farmers and tenants in all states and UTs of India. Since implementation in the Kharif 2016, the scheme has entered the thirteenth season in Kharif 2022 and has made very good progress. To know farmers’ view about this scheme, primary data were collected from 200 farmers of UP and Rajasthan for year 2020-21. The farmers were divided into two groups as beneficiary and non- beneficiary. The farmer’s perception indicated that 24% of non-beneficiary farmers have even not heard the name of the scheme and 89% of farmers are not knowing the different steps and processes of the scheme. 86% of non-beneficiary farmers and 62% of benefitted farmers responded that the promotion of the scheme is insufficient. 62% of non-benefitted farmers have suggested that there should be at least two meetings per year for the promotion of the scheme. 36% of benefitted farmers have responded that payment of claims is given in 3-4 months while 64% received it in 4-5 months. 44% of non-benefitted farmers have asked for claims settlement within two months. 78% of farmers who have received one or two claims for losses are found satisfied with the scheme, and most of the farmers are satisfied with the registration process. Thus, the incorporation of the responses of farmers is necessary for the success of the crop insurance scheme.