IMPACT OF PRADHAN MANTRI FASAL BIMA YOJANA ON THE LIVELIHOOD OF FARMERS IN HAMIRPUR DISTRICT OF HIMACHAL PRADESH
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Date
2021-12
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UHF,NAUNI
Abstract
ABSTRACT
The present study entitled “Impact of Pradhan Mantri Fasal Bima Yojana on the livelihood of farmers
in Hamirpur district of Himachal Pradesh.” was conducted during the year 2020-21. A sample of 120 farmers was
selected consisting of 60 beneficiaries and 60 non-beneficiaries by multistage random sampling technique. The
selected beneficiaries were further divided into two groups i.e. claim holders and non-claim holders. The progress of
PMFBY was good in Himachal Pradesh and Hamirpur district since its implementation in terms of the number of
farmers benefitted and claim paid in both seasons i.e. Kharif and Rabi from 2016 to 2020. However, the area covered
and farmers insured have shown a decrease in Himachal Pradesh while increase in Hamirpur district from 2016 to
2020. Beneficiaries had a larger average family size (5.40 people) than non-beneficiaries (5.08 persons) and
household literacy revealed that 95.84 percent of beneficiaries and 93.47 percent of non-beneficiaries were literate.
Agriculture was the main occupation among both beneficiaries and non-beneficiaries. In both insured and non-insured
farmers, cultivated land had the highest share of average landholding, followed by Ghasnis, barren land and land put
to non-agriculture use. Cropping intensity among beneficiaries and non-beneficiaries were 185.76 and 173.58 per cent
respectively. In the study area, beneficiaries had 1.67 adult cattle units while non-beneficiaries had 1.68 adult cattle
units. Farm income in the case of claim holders was Rs. 53522.33 which was higher than non-claim-holder’s income
of Rs. 49419.84. Livelihood framework analysis showed that beneficiaries had a better position in social, financial and
human assets status than non-beneficiaries. Landholding size, income, awareness and contact with extension agents
were key factors that affected the adoption of PMFBY. Overall, 51.10 per cent of beneficiaries and 13.28 per cent
non-beneficiaries were significantly aware of PMFBY. PMFBY acts as a safeguard against production losses has
shown significant, positive and highest impact on the adoption of the scheme among beneficiaries and perception
"Farmers friendly procedure in buying crop insurance" has shown a significant and most positive effect on adoption in
non-beneficiaries. The mean willingness to pay of non-beneficiaries was Rs. 649.79, 539.32 and 644.54 per hectare
for maize, wheat and paddy respectively which was higher than the existing premium rates in the study area. Contact
with extension agents, literacy rate, farmers friendly procedure in buying crop insurance and lack of trustworthiness
has shown positive and significant impact on willingness to pay for field crops among non-beneficiaries. Major
constraints faced by beneficiaries were lack of awareness regarding scheme, insufficient compensation and delay in
claim settlements. Whereas, procedural difficulties in enrolment, lack of contact with agricultural extension agents
were key constraints faced by non-beneficiaries. For a better scheme's success, large-scale awareness programmes,
timely claim settlement and sufficient compensation should be provided.