A Comparative Study on the Performance of Various Agricultural Crop Insurance Schemes of India with Special Reference to Pradhan Mantri Fasal Bima Yojana (PMFBY)

Abstract

This study examined the performance of Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme in India. To evaluate the performance of the Pradhan Mantri Fasal Bima Yojana in comparison with previous crop insurance schemes of India, data on area insured, gross premium paid, number of farmers benefitted and number of claims paid during 2016-2021 were collected. The study employs descriptive statistics and compound annual growth rates to compare the performances of various crop insurance schemes. The determinants of the number of farmers insured under Pradhan Mantri Fasal Bima Yojana were estimated through a multiple regression analysis. In comparison, PMFBY had covered a higher number of farmers thereby protecting an enormous amount of land from unforeseen risks compared to other crop insurance schemes of India. Results of the multiple regression model show that the amount of premium charged from farmers had a significant effect on the number of farmers insured over the time period. The paper also attempts to provide an overall knowledge about various crop insurance schemes of India since the implementation of crop insurance as a tool for mitigating agricultural risk.