Vol. 12, Issue 5 (2023)

Author(s):
Twinkle Thapa and Dr. Ashish S Noel

Abstract:
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme launched by the Government of India to safeguard the interest of farmers against losses incurred due to crop damage. Despite the benefits offered by the scheme, the adoption rate among farmers has been low. This research paper explores the perception of farmers towards crop insurance schemes in Prayagraj district, Uttar Pradesh, India. The study adopted a multiple-stage stratified sampling process, and data was collected from both insured and uninsured farmers. The findings suggest that the majority of insured farmers perceive the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme to be better than earlier crop insurance schemes. However, the high insurance premium is perceived as the most significant challenge faced by insured farmers, followed by delays in compensation and inadequate compensation. The lack of premium-paying capacity and lack of awareness of the scheme are identified as the primary reasons for not taking up crop insurance. The administrative requirements of insurance schemes need to be simplified to increase the uptake of crop insurance. The study highlights the need for further awareness and education among farmers to increase the adoption of crop insurance schemes.