2016 · GS Paper 3 · Q10 · 12 marks
Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY).
In short
Rainfed farming exposes Indian farmers to village-wide weather shocks that push them into debt, and crop insurance keeps them solvent and bankable. PMFBY caps farmers' premium at 2% for kharif and 1.5% for rabi crops and covers prevented sowing and post-harvest losses.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 279 words
Village-Wide Shocks
Droughts, floods and hail strike whole villages at once, as the March 2015 hailstorms did across Uttar Pradesh and Maharashtra, so informal help fails.
Rising Climate Volatility
Heat stress, as in the March 2022 heatwave that cut wheat output, makes yields less predictable.
Keeping Farmers Bankable
A claim repays the Kisan Credit Card loan, keeping the farmer away from moneylenders.
Uniform Low Premium
Farmers pay at most 2% for kharif, 1.5% for rabi and 5% for commercial and horticultural crops, with no cap on the government's share.
Wide Risk Cover
It covers prevented sowing, standing-crop loss, localised hailstorm and landslide damage, and post-harvest losses up to 14 days.
Technology for Claims
Remote sensing, drones and YES-TECH yield estimation from kharif 2023 speed settlement (PIB, 2025).
Expanding Reach
Voluntary for all since kharif 2020, it insured 4.19 crore farmers in 2024-25 and has paid about ₹1.83 lakh crore in claims (PIB, 2025).
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This chapter in the exam
Farm Subsidies and Minimum Support Prices8 questions
Asked in 8 of 14 sittings since 2013
- 2026Discuss the different types of subsidies and supports provided by the Government of India to agricultural sector. Examine the related issues pertaining to Agreement on Agriculture of World Trade Organisation (WTO). (Answer in 250 words)
- 2023What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies.
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Question from the official UPSC Civil Services (Main) Examination 2016 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.