Author: Bharatraj Singh Pal, PG Student at Gujarat National Law University
ABSTRACT
Farmers in India face significant agricultural risks, primarily due to natural disasters that severely impact their livelihoods. One of the most effective ways to mitigate these risks is by implementing a robust crop insurance system, which can help meet the financial needs of farmers. In recent years, factors such as indebtedness, crop failures, low prices, inadequate returns, and flaws in crop insurance programs have contributed to widespread agricultural distress across the country. Although numerous crop insurance schemes have been introduced and modified over time, gaps still remain in addressing farmers’ needs. These gaps may manifest as delays in damage assessment, slow claim payouts, limited coverage, or high premiums. Consequently, there is a pressing need for a comprehensive scheme with all essential components and effective implementation. This paper explores the evolution of crop insurance in India, focusing on the social, ethical, and legal challenges associated with these schemes. Additionally, it evaluates the performance of the Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, which is widely recognized as the “one nation, one scheme” for crop insurance.
Keywords: Crop Insurance, Schemes, Premium, Farmers, Risks.
