Prediction of Farmers’ Access to Pradhan Mantri Fasal Bima Yojana (PMFBY) Scheme using Discriminant Analysis

Crops are subject to risks generated by adverse weather conditions, natural disasters, biological reasons and market price volatility. Crop insurance is a strategy hedge the risk of loss arising out of agricultural activities. The PMFBY was launched in 2016 with an impetus on agricultural sector. The successes of crop insurance business depend on the awareness of the beneficiaries about the products and services rendered. Hence the study aims at analysing awareness and access to the Scheme by the farmers who have insured their crops mandatorily or voluntarily. The sample farmers were drawn from Thondamuthur block in Coimbatore District of Tamil Nadu, which is notified by PMFBY scheme as the Low Risk Profile District purposively taking into account those who have insured their crops under PMFBY Scheme during the study period of Kharif 2018. The sample size includes 187 respondents comprising of 115 loanee farmers covered under the scheme and 72 non-loanee farmers covered under the scheme voluntarily. The primary data were collected through structured interview schedule and were subjected to test of reliability. The secondary data was collected from published sources. The descriptive statistics and inferential statistics namely factor analysis and discriminant analysis was employed in data analysis. The result showed that a moderate level of awareness is prevailing PMFBY scheme among the farmers about the features of the scheme. The non-loanee farmers were much aware of various features than loanee farmers. The access to the scheme by the non-loanee farmers were determined by announcement of cut-off date ahead of the particular season and support services available at the villages. The access to the scheme by the loanee farmers is because of mandatory deduction of premium out of agricultural credit, Insurance policy provided at their doorstep by authorities, agencies and involvement of local leaders.