Pradhan Mantri Fasal Bima Yojana, touted as one of the most farmer-friendly crop insurance schemes of independent India has some opposition from fertile Punjab region. With more advanced agriculture sector with more mechanization and canal fed irrigation and increased power subsidy, agriculture in Punjab is different from rain fed agriculture of other state. The current insurance scheme provides an indemnity level of 90 per cent. In Punjab, the average loss of major crops, wheat and paddy, is between two per cent and three per cent. So Punjab farmers will not benefit from this scheme and has request the indemnity level be raised to 95 per cent.
Further, with increased mechanization, the crops are harvested immediately and transport in a short time and hence the farmers have requested inclusion of insurance coverage of harvested products in yard till purchase of agencies.