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Q21·GS Paper 1 · Prelims 2016

Pradhan Mantri Fasal Bima Yojana

EconomyAgricultural Insurance SchemeStatement-basedMediumStatic

Question

With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements:

1Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
2This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

  1. 1.

    Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.

  2. 2.

    This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Options

a

1 only

b

2 only

Answer
c

Both 1 and 2

d

Neither 1 nor 2

Explanation

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme launched in 2016. Statement 1 is incorrect because the premium structure is not uniform at two percent for all crops and seasons; premiums vary by crop and season. For kharif crops, farmers pay 2% premium, and for rabi crops, they pay 1.5% premium; for horticultural crops, it can be higher. Statement 2 is correct as the scheme explicitly covers post-harvest losses arising from cyclones and unseasonal rains for a specified period after harvest. The scheme aims to provide comprehensive crop insurance coverage to farmers at affordable premiums. > Key point: PMFBY has variable premiums based on crop type and season, not a uniform 2% rate across all cases. Answer: (b).

Question details

Year

2016

Paper

GS Paper 1

Question

Q21

Subject

Economy

Sub-topic

Agricultural Insurance Scheme

Type

Statement-based

Difficulty

Medium

Nature

Static

Source hint

UPSC 2016 GS Paper 1

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