UPSC Prelims 2016·GS1·economy·economic sectors and development

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?

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  1. A1 only
  2. B2 onlyCorrect
  3. CBoth 1 and 2
  4. DNeither 1 nor 2

Explanation

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme launched by the Government of India. Let's analyze the statements: 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: This statement is incorrect. The PMFBY specifies differential premium rates: 2% for all Kharif crops, 1.5% for all Rabi crops, and 5% for annual commercial/horticultural crops. The uniform premium rate is not 2% for 'any crop' in 'any season'. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains: This statement is correct. The PMFBY provides coverage for post-harvest losses. These losses are assessed at the individual farm level in cases of localized calamities (e.g., hailstorms, landslides) and also specifically covers losses due to cyclones and unseasonal rains (cyclonic rains) occurring up to a period of 14 days from harvesting for those crops which are required to be dried in cut and spread condition in the field. Thus, only statement 2 is correct.
economy: With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements: 1. Under this scheme, farmers w

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