Performance Of Agricultural Insurance In India

Abstract

India's economy relies heavily on agriculture. Agriculture remains the lifeblood of India's economy notwithstanding the country's progress in other areas. All of these things contribute to yield discrepancies as well. Disease, insect, and natural or anthropogenic disasters like as flooding, drought, and fire can reduce production. Area and yield may be impacted in the same manner, differently, or in the opposite way depending on the event. Since crop insurance is the only means of safeguarding agricultural productivity, it is crucial to have on hand in case of unanticipated perils. As a result of the shortcomings of the previous crop insurance system, the Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced on Baisakhi day for the 2016 Kharif season. While the total insured area has grown by 6.5% (from 53.7m ha in 2015-16 to 57.2m ha in 2016-17), this is still a very small rise.