AN OVERVIEW OF THE FOOD CROPS INSURANCE SCHEME'S PAST EVENTS, CURRENT STATE, AND PERFORMANCE EVALUATION IN INDIA

Abstract

In India, one of the most important instruments that protect the farmer from agricultural variability is agriculture insurance. It is the valuable risk management tool that can offer financial security to those who engage in agricultural activity. Agriculture insurance is the only mechanism for coping with natural hazards. The study aimed to know regarding the effectiveness of Indian agricultural insurance. When assessing the efficacy in crop insurance & programs, the research has attentive on enrolment coverage, claim settlement, and financial implications. It is basically focused on PMFBY (Pradhan Mantri Fasal Bima Yojana) along with the RWBCIS (Restructured Weather Based Crop Insurance Scheme); the study period had been considered from 2018 to 2022. It also explores the historical context of crop insurance development, examines the key features and implementation of existing schemes, and analyses their effectiveness in mitigating agricultural risks. One of the main finding is noticeable rise Participation of farmers in the PMFBY. These increases demonstrate that farmers are aware of and willing to use agriculture insurance to mitigate risk. Although the claim settlement is high, it means that the government has to pay more amount as a subsidy in comparison to farmers. Therefore, the challenge remains in terms of government subsidy. This indicates that a significant amount is collected as a premium to settle claims to the farmers. A higher ratio means that a more substantial portion of premiums compensates farmers for their losses.