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[[File:India Farming.jpg|thumb|An Indian farmer]]
[[Agriculture in India]] is highly susceptible to risks like droughts and floods. It is necessary to protect the farmers from natural calamities and ensure their credit eligibility for the next season. For this purpose, the [[Government of India]] introduced many agricultural schemes throughout the country.

==Pradhan Mantri Fasal Bima Yojana==
The [[Pradhan Mantri Fasal Bima Yojana]] (Prime Minister's Crop Insurance Scheme) was launched by [[Prime Minister of India]] [[Narendra Modi]] on 13 February 2016.<ref name=toi>{{citation |title=Fasal Bima Yojana will solve farmers' problems: PM Modi |url=http://timesofindia.com/india/Fasal-Bima-Yojana-will-solve-farmers-problems-PM-Modi/articleshow/51039043.cms |work=[[The Times of India]] |date=18 February 2016 |access-date=19 February 2016 |archive-date=6 May 2021 |archive-url=https://web.archive.org/web/20210506012632/https://timesofindia.indiatimes.com/india/Fasal-Bima-Yojana-will-solve-farmers-problems-PM-Modi/articleshow/51039043.cms |url-status=live }}</ref><ref>{{citation |title=Crop insurance scheme will benefit farmers: Modi |url=http://www.business-standard.com/article/news-ians/crop-insurance-scheme-will-benefit-farmers-modi-116021800601_1.html |work=[[Business Standard]] |date=18 February 2016 |access-date=19 February 2016 |archive-date=19 February 2016 |archive-url=https://web.archive.org/web/20160219185637/http://www.business-standard.com/article/news-ians/crop-insurance-scheme-will-benefit-farmers-modi-116021800601_1.html |url-status=live }}</ref>

==Previous schemes==

===Farm Income Insurance Scheme===

The Central Government formulated the Farm Income Insurance Scheme (FIIS) during 2003-04. The two critical components of a farmer's income are yield and price. FIIS targeted these two components through a single insurance policy so that the insured farmer could get a guaranteed income.{{citation needed|date=August 2017}}

The scheme provided income protection to the farmers by insuring production and market risks. The insured farmers were ensured minimum guaranteed income (that is, average yield multiplied by the minimum support price). If the actual income was less than the guaranteed income, the insured would be compensated to the extent of the shortfall by the [[Agriculture Insurance Company of India]]. Initially, the scheme would cover only wheat and rice and would be compulsory for farmers availing crop loans. NAIS (explained in the section below) would be withdrawn for the crops covered under FIIS, but would continue to be applicable for other crops.{{citation needed|date=August 2017}}

The FIIS was withdrawn in 2004.<ref>{{cite web | url = http://www.thehindubusinessline.in/2004/06/11/stories/2004061101191900.htm | title = Farm Income Insurance Scheme withdrawn | publisher = [[The Hindu Business Line]] | date = 2004-06-11 | accessdate = 2011-10-14 }}</ref>
<ref>{{Cite web |url=http://www.thehindu.com/opinion/op-ed/protecting-the-small-farmer/article7065655.ece |title=Archived copy |access-date=4 April 2015 |archive-date=9 March 2021 |archive-url=https://web.archive.org/web/20210309192441/https://www.thehindu.com/opinion/op-ed/protecting-the-small-farmer/article7065655.ece |url-status=live }}</ref>

===National Agriculture Insurance Scheme===

The Government of India experimented with a comprehensive crop insurance scheme which failed. The Government then introduced in 1999-2000, a new scheme titled “National Agricultural Insurance Scheme” (NAIS) or “Rashtriya Krishi Bima Yojana” (RKBY).<ref>[http://www.indg.in/agriculture/schemes/nationalagriculturalinsurancescheme NationalAgriculturalInsuranceScheme (NAIS) / Rashtriya Krishi Bima Yojana (RKBY)] {{webarchive |url=https://web.archive.org/web/20110104142120/http://www.indg.in/agriculture/schemes/nationalagriculturalinsurancescheme |date=4 January 2011 }}</ref> NAIS envisages coverage of all food crops (cereals and pulses), oilseeds, horticultural and commercial crops. It covers all farmers, both loanees and non-loanees, under the scheme.

The [[insurance premium|premium]] rates vary from 1.5 percent to 3.5 percent of sum assured for food crops. In the case of horticultural and commercial crops, actuarial rates are charged. Small and marginal farmers are entitled to a subsidy of 50 percent of the premium charged- the subsidy is shared equally between the Government of India and the States. The subsidy is to be phased out over a period of 5 years.

NAIS operates on the basis of

# Area approach
# On individual basis- for localized calamities such as hailstorms, landslides, cyclones and floods.

Under the scheme, each state is required to reach the level Gram Panchayat as the unit of insurance in a maximum period of 3 years. Agriculture Insurance Corporation of India is implementing the scheme.

== References ==
{{reflist}}

== External links ==
* [https://web.archive.org/web/20090410014734/http://des.kar.nic.in/cis/Guidelines.pdf National Agricultural Insurance Scheme (NAIS) guidelines]
* [http://www.ncap.res.in/upload_files/others/oth_15.pdf Agricultural Insurance in India Problems and Prospects]
* [https://web.archive.org/web/20120425064312/http://www.fair.org.eg/Review/Aricles/141/NIA%20Crop.pdf Crop Insurance - An Indian Experience]
* [https://pmfby.gov.in Pradhan Mantri Fasal Bima Yojana]
* [http://www.gktoday.in/blog/pradhan-mantri-fasal-bima-yojana/ gktoday]

{{Insurance in India}}

[[Category:Agricultural insurance in India| ]]
[[Category:Agricultural insurance|India]]
[[Category:Insurance in India]]
[[Category:Agriculture in India|Insurance]]

Agricultural insurance in India - Revision history

>Serols at 10:48, 20 June 2021