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1) Examine the reasons behind reduction in number of insured farms, agricultural area under the PMFBY.(250 words)

Topic–  Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

1) Examine the reasons behind reduction in number of insured farms, agricultural area under the PMFBY.(250 words)


Why this question

PMFBY is an important scheme of the govt of India, and an instrument of the goal to double the farmer’s income by 2022. The scheme offers huge scope of providing a comprehensive risk cover to farmers in India, which are faced with numerous uncertainties of nature, income and markets. It is important to know the reasons behind apparent/ real failure of the scheme.

Directive word

Examine- Here we have to probe deeper into the topic,  get into details, and find out the causes or implications if any.

Key demand of the question.

The question wants us to bring out the reasons behind the decrease in the  agricultural land area and the no. of farms (which is correlated with the area covered) which is/ are insured under PMFBY.

Structure of the answer

Introduction- Write a few lines about PMFBY and its importance and mention the decrease in no. of farms covered and hence agricultural land covered (30% covered against the target of covering 50 per cent of the gross cropped area by March 2019, under PMFBY.


  1. Discuss in points the possible reasons behind the poor performance of the scheme. E.g Discuss the concept of Crop Cutting Experiments and the issues involved in it- use of technology to save time and costs, as mandated, is not being implemented; private insurance companies influencing decisions of these experiments and reducing the compensation available to the farmers; States do not have manpower to conduct  the targeted CCEs, poor grievance redressal on part of insurance companies as mandatory under PMFBY; several states are not regular in paying their share of premium citing heavy financial load;  high cost of actuarial premium as it accounts for nearly one-third of the budget of the Department of Agriculture Cooperation and Farmers Welfare under the Union government- which is due to untimely notification by states for bidding by insurance companies and change in the fundamental structure of insurance business etc.

Conclusion- Stress upon the need to remove these anomalies and bring corresponding changes in the scheme in order to achieve the aim of doubling farmers’ income by 2022.