Under Pradhan Mantri Fasal Bima Yojana, the maximum premium payable by the farmers will be _________ for annual commercial crops.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 5%.
Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), the maximum premium payable by farmers for annual commercial and horticultural crops is 5% of the sum insured. This scheme was launched to provide affordable crop insurance to farmers and protect them against crop loss due to natural calamities, pests, or diseases. The premium rates are capped to keep insurance affordable: 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops. Any additional premium is shared and paid by the central and state governments. This initiative aims to ensure financial stability and encourage sustainable farming practices.