Examine the role of crop insurance schemes such as PMFBY in building climate resilience among smallholder farmers.

Q. Examine the role of crop insurance schemes such as PMFBY in building climate resilience among smallholder farmers. (15 marks, 250-350 words)

Climate resilience means the capacity to absorb and recover from climatic shocks. With IMD projecting 2026 monsoon rainfall at only 90% of the Long Period Average amid developing El Niño conditions [2], crop insurance has become a core risk-transfer instrument for India's smallholders — though it addresses recovery more than prevention.

How PMFBY builds resilience - Risk transfer at low cost: farmer premium capped at 2% (Kharif), 1.5% (Rabi), 5% (commercial/horticultural), the balance subsidised by Centre and States — affordable for marginal holdings [1]. - Scale of protection: the world's largest crop insurance scheme by farmer applications, with 13.48 crore applications and 380.86 lakh hectares insured [1]. - Credit and investment confidence: assured compensation prevents distress sale of assets and encourages continued investment in inputs. - Technology-enabled assessment: satellite imagery, drones and remote sensing for crop-cutting experiments, yield estimation and loss assessment reduce delay and dispute [1]. - State-level layering: Tamil Nadu's 2026-27 rollout across 14 clusters in all 37 districts, with ₹648.55 crore State share targeting 15 lakh farmers, shows insurance paired with district contingency planning [3].

Limitations that dilute resilience - Compensatory, not preventive: it indemnifies loss but does not reduce exposure; adaptation needs drought-tolerant varieties, micro-irrigation and crop diversification. - Coverage gaps: tenant farmers, sharecroppers and oral lessees often lack documentation to enrol. - Assessment unit problem: area-based yield thresholds mean an individual's loss may go uncompensated if the block average holds. - Delayed claim settlement and State premium-subsidy arrears erode trust and prompt exits.

Crop insurance is thus a necessary shock-absorber but an insufficient one on its own. Its resilience value multiplies when embedded within a wider adaptation architecture — early-warning forecasts, district agricultural contingency plans, drought-proofing and diversification. Extending enrolment to tenant cultivators, moving toward individual-plot assessment and timely settlement would align PMFBY with SDG-13 (Climate Action) and SDG-2 (Zero Hunger), securing farm incomes against an increasingly volatile monsoon.

(~325 words)

Sources: 1. Pradhan Mantri Fasal Bima Yojana turns Nine — PIB (2025) — 2016 launch, premium caps, 13.48 crore applications, 380.86 lakh hectares, remote-sensing based loss assessment 2. Updated Long Range Forecast for the Southwest Monsoon Seasonal Rainfall, June–September 2026 — PIB/IMD — 90% of LPA forecast, ENSO transitioning toward El Niño 3. Contingency plans made for districts to cope with Super El Niño impact, says Minister — The Hindu (2026) — Tamil Nadu PMFBY 2026-27: 14 clusters, 37 districts, ₹648.55 crore, 15 lakh farmers