Crop Insurance and Farmer’s Livelihood: A Case of PMFBY in Himachal Pradesh

Instability in production, market and other risks make agriculture a riskier enterprise thus affecting farmers’ income and food security. Under this risky scenario of agriculture enterprises, Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced by the government to alleviate crop uncertainties in the interest of the country’s farmers, as part of the “One Nation-One Plan”. The present study sought to determine the impact of PMFBY on farmer’s livelihood and to identify the determinants of the adoption of the scheme. The data were collected from 120 farmers consisting of 60 beneficiaries and 60 non-beneficiaries by simple random sampling technique in the Hamirpur district of Himachal Pradesh. To this end, livelihood framework analysis was used. The findings of the Livelihood framework analysis illustrated that beneficiaries had a better position in social, financial and human assets status than non-beneficiaries. Findings of the study vitalize the policy towards awareness of the farmers towards the scheme, as farmers do not understand the implantation procedure of the scheme. Early claim settlement and timely payment of compensation would help to raise the adoption of the scheme.