Parliamentary Panel on PMFBY and Crop Residue Incentives
Why in the news
A parliamentary committee made recommendations to strengthen crop insurance under PMFBY and to discourage stubble burning through cash incentives.
Key facts
| Area | Recommendation |
|---|---|
| PMFBY coverage | Add damage from stray animals |
| Small farmers | Free, compulsory insurance for holdings up to 2 hectares, like the PMJAY health model |
| Residue burning | ₹100 per quintal of paddy through DBT, additional to MSP |
| Alternatives | Bioenergy, composting and other productive uses |
| Long term | Pilot study before scaling incentives |
- Stray animals often destroy crops, causing financial loss, hence the coverage proposal.
- Free cover would steady small farmers’ finances, encourage investment and lower the risk of debt traps.
- Current PMFBY problems: delayed release of state funds and inadequate compensation for losses.
- Residue policy also needs farmer education and technological innovation.
Significance
- Farmer welfare: lower risk and income relief while encouraging sustainable practices.
- Environment: less stubble-burning pollution, especially in North India.
Concerns
- A heavier fiscal burden from wider PMFBY cover and direct incentives.
- Timely fund disbursal needs efficient execution.
Exam angle
- Scheme: Pradhan Mantri Fasal Bima Yojana (PMFBY).
- Proposed payment: ₹100/quintal paddy residue via DBT.
- Eligibility for free insurance: up to 2 hectares.