Agricultural insurance in India

For this purpose, the Government of India introduced many agricultural social insurances throughout the country, the most important one of them being Pradhan Mantri Fasal Bima Yojana.

[citation needed] The scheme provided income protection to the farmers by insuring production and market risks.

Initially, the scheme would cover only wheat and rice and would be compulsory for farmers availing crop loans.

[4] [5] The Government of India experimented with a comprehensive crop insurance scheme which failed.

NAIS operates on the basis of Under the scheme, each state is required to reach the level Gram Panchayat as the unit of insurance in a maximum period of 3 years.

Although this program is intended to increase per farmer income – a goal advocated by Bhimrao Ramji Ambedkar – setting an artificial price also impairs decision making in crop insurance – also a major policy focus for Ambedkar, the subject of many of his public speeches, and some of his academic work.