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-harves

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Q: 96 (IAS/2016)
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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,139,71,11,139,49,11

keywords: 

{'pradhan mantri fasal bima yojana': [0, 0, 0, 1], 'scheme': [0, 0, 1, 0], 'farmers': [1, 3, 8, 26], 'uniform premium': [0, 0, 0, 1], 'crop': [0, 0, 1, 1]}

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme in India, meant to provide insurance coverage and financial support to farmers in the event of failure of any notified crop as a result of natural calamities, pests, and diseases.

Option 1 is incorrect. While it is true that the PMFBY does involve farmers paying a premium, it`s not a uniform two percent for all crops and seasons. Instead, the premium is 2% for Kharif crops, 1.5% for Rabi crops and 5% for Commercial and Horticultural crops.

Option 2 is correct. The PMFBY does provide coverage for post-harvest losses arising from cyclones and unseasonal rainfall. Post-harvest losses covered include those occurring within two weeks after harvesting when the harvest is left to dry in the field.

Option 3 and 4 are respectively incorrect and partially correct, based on the explanation given above for options 1 and 2.

So, the correct answer is "2 only".