UPSC 2016EconomyModerate

With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements : 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. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. Which of the statements given above is/are correct?

A
1 only
B
2 only
Correct Answer
C
Both 1 and 2
D
Neither 1 nor 2

Explanation

Statement 2 is correct because PMFBY provides comprehensive coverage for post-harvest losses occurring up to 14 days after harvest due to specific perils like cyclones and unseasonal rains. Statement 1 is incorrect because the premium is not uniform for all crops; it is fixed at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for annual commercial and horticultural crops. The core concept tested is the specific operational guidelines and premium structure of major government-sponsored agricultural insurance schemes.

Government Schemes (Agriculture)Crop Insurance SchemesPradhan Mantri Fasal Bima Yojana (PMFBY)premiumtwo percentcropseasonpost-harvest lossescyclonesunseasonal rains

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