Weathering the Risk: Investigating Farmer Withdrawals from PMFBY and Underlying Agricultural Challenges

AbstractThe Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched to provide financial protection to Indian farmers against crop losses due to natural calamities, pests, and diseases. However, despite its intended benefits, several farmers have discontinued their participation in the scheme. This study investigates the underlying reasons for the withdrawal of PMFBY by beneficiary farmers in Samba district of Jammu and Kashmir. Data was collected from 225 farmers, including 150 PMFBY beneficiaries and 75 non-beneficiaries, binary logistic regression was used to analyze the data. The findings reveal that dissatisfaction with claim procedures, high premium rates, tedious processes and lack of transparency are the key drivers of discontinuance. Logistic regression analysis indicated that education level (p=0.02) and irrigated land holding (p=0.009) significantly influenced farmers’ decisions to opt out. Farmers also suggested individual-level assessment (84.00%), greater awareness (75.00%) and improved claim settlement mechanisms (59.00%) to enhance the scheme’s effectiveness. The study highlights the need for policy reform and targeted interventions to restore farmer confidence and ensure the sustainability of crop insurance in India.