Question

Q. With reference to Pradhan Mantri Fasal Bima Yojana (PMFBY), consider the following statements:

Select the correct answer using the code given below:

• A. 1 only
• B. 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is B 3 only

Explanation:

Statement 1 is incorrect: Following crops are covered under the PMFBY:

• Food crops (Cereals, Millets, and Pulses)
• Oilseeds
• Annual Commercial/Horticultural crops

Statement 2 is incorrect: There are compulsory and voluntary components involved in the coverage of farmers under PMFBY.

• Compulsory component: All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers)for the crop(s) notified would be covered compulsorily.
• Voluntary component: The Scheme would be optional for the non-loanee farmers.

Statement 3 is correct: Pradhan Mantri Fasal Bima Yojana (PMFBY) aims for supporting sustainable production in the agriculture sector by way of:

1. Providing compensation to farmers suffering crop loss/damage arising out of unforeseen events.
2. to stabilize the income of farmers to ensure their continuance in farming.
3. to encourage farmers to adopt innovative and modern agricultural practices.
4. to ensure the flow of credit to the agriculture sector which will contribute to food security, crop diversification, and enhancing growth and competitiveness of the agriculture sector besides protecting farmers from production risks.