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Q21 (IAS/2016) Economy › Schemes, Inclusion & Social Sector › Agriculture support schemes Official Key

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?

Result
Your answer: —  ·  Correct: B
Explanation

The premium rates under PMFBY are not uniform across all seasons - farmers pay 2% for Kharif crops and 1.5% for Rabi crops, with horticulture and cotton crops having premiums up to 5%[1]. Therefore, **Statement 1 is incorrect** as it claims a uniform 2% premium for any crop in any season.

Statement 2 is correct - the scheme provides post-harvest loss coverage up to a maximum period of two weeks from harvesting for crops allowed to dry in cut and spread condition in the field, specifically against cyclones, cyclonic rains, and unseasonal rains[2]. This coverage is available for crops that need field-drying after harvest.

Since only Statement 2 is correct, **option B (2 only)** is the right answer. The scheme's premium structure varies by season and crop type, while post-harvest protection against specific weather events like cyclones and unseasonal rains is indeed a feature of PMFBY.

Sources
  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.14 Pradhan Mantri FasalBima Yojana (PMFBY) > p. 321
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Coverage of Risks: > p. 322
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements : 1. Under this scheme, farmers will have to pay…
At a glance
Origin: Mixed / unclear origin Fairness: Moderate fairness Books / CA: 6.7/10 · 0/10
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This is a classic 'Flagship Scheme' question. Statement 1 is a 'Generalization Trap'—swapping specific tiered rates (2%, 1.5%, 5%) for a blanket 'uniform' rule. Statement 2 tests the specific 'USP' of the scheme (post-harvest coverage). Strategy: For major schemes, memorize the exact numbers (premiums, funding ratios) and the specific 'new' benefits added compared to the old scheme.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), is the farmer premium rate fixed at 2%?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.14 Pradhan Mantri FasalBima Yojana (PMFBY) > p. 321
Presence: 5/5
“"Pradhan Mantri FasalBima Yojana" (PMFBY) is being implemented from Karif season of 2016. The following are the salient features of the PMFBY scheme: - • Only one premium rate for each season for all food grains, oilseeds and pulses removing all variations in rates across crops and districts within a season. Kharif - 2% and Rabi - 1.5%. For horticulture and cotton crops, the premium may go up to 5%• So, farmers premium is fixed while Government (Centre and States equally) bears the remaining financial burden of the premium• The farmers get full insurance cover.”
Why this source?
  • Explicitly states PMFBY has one premium rate per season and gives Kharif = 2% and Rabi = 1.5%.
  • Says farmers' premium is fixed while Centre and States bear the remaining premium burden.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Implementation of the Scheme: > p. 323
Presence: 4/5
“The Banks shall provide individual farmer wise details claim credit details to Insurance Agency and shall be incorporated in the centralised data repository. The scheme is doing well and coverage has increased to around 40% of the farmers (around 5.5 crore farmers every year on an average). But, some incidents were reported like states not paying their part of the premium subsidy on time and the delay in settlement of claims to farmers and insurance companies making huge profits. Under PMFBY, if the insurance company charges premium of 40% then farmers pay 2% (fixed for kharif crop) and the rest 38% premium is shared by Centre and State equally means centre will pay 19% and State also 19%.”
Why this source?
  • Gives an operational example: if insurer's premium is 40%, farmers pay 2% (noting this is fixed for kharif) and Centre/State share the rest.
  • Reinforces that 2% is the fixed farmer contribution for the Kharif season.
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