The United Nations Development Programme (UNDP) and bioscience company Absolute® have signed a Memorandum of Understanding (MoU) to strengthen India’s flagship Pradhan Mantri Fasal Bima Yojana (PMFBY) and enhance farmers’ resilience. The collaboration aims to address various challenges faced by Indian farmers, including weather fluctuations, pest attacks, erratic rainfall, and humidity, leading to lower yields and income.
Significance: Ensuring Resilience for Farmers and Agricultural Sector
- The collaboration between UNDP India and Absolute® holds significant importance in ensuring resilience for farmers and the agricultural sector as a whole.
- By enhancing the implementation of PMFBY and the Restructured Weather Based Crop Insurance Scheme (RWBCIS), the partnership aims to offer critical risk protection and financial support to farmers affected by unforeseen events like floods, excess rains, and droughts.
The significance of the collaboration lies in the following aspects:
Strengthening Income Stability: PMFBY’s risk protection ensures that farmers receive financial support in the event of crop loss or damage, stabilizing their income and providing a safety net during difficult times.
Promoting Adoption of Innovative Practices: The scheme encourages farmers to adopt modern and innovative agricultural practices to mitigate risks and enhance productivity.
- Ensuring Agricultural Credit Flow: By stabilizing farmers’ income, PMFBY encourages the flow of credit to the agriculture sector, fostering food security and supporting crop diversification.
- Leveraging Advanced Technology: The partnership’s focus on utilizing advanced technology and data-driven solutions will enhance the efficiency and transparency of crop insurance and agricultural credit processes.
- Empowering Farmers: The collaboration aims to empower farmers through credit profiling and accurate crop loss assessment, enabling better risk evaluation and mobilization of agriculture financing.
- Data-driven Policymaking: Advanced technology will facilitate farmland identification, farm monitoring, and analytical capabilities, leading to data-driven policymaking and fraud analytics.
- Supporting Vulnerable Farmers: The efficient and transparent delivery of government support through PMFBY will benefit vulnerable farmers who are susceptible to climate-driven yield losses.
Strengthening Food Security: The infusion of technology in the agriculture sector will lead to increased food security, crop diversification, and overall growth and competitiveness.