Agriculture is the backbone of many economies, including India as it contributes about 17% to our country’s GDP. The industry as a whole faces many significant challenges, and post-harvest losses are one of them. To combat challenges of post-harvest losses and provide financial security to farmers, Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in India in 2016.

Here, you will learn about the nuances of post-harvest losses in PMFBY, understand the cause of such losses, and how PMFBY addresses risk management post-harvest.

Understanding Post-Harvest Losses

In simple words, the decrease in quality and quantity of the harvested crop from when it leaves the field to the point storage or sale is referred to as post-harvest losses. Various factors, including inadequate storage facilities, market constraints, and transportation issues, can lead to such losses. Post-harvest losses can result from physical damage, quality deterioration, or storage, which can severely impact farming operations in a substantial manner.

Although PMFBY policy has its primary focus on pre-harvest risks, addressing the post-harvest losses is essential for comprehensive risk management. It is important to address post-harvest losses to ensure food security, the farmer’s income stability, and overall economic growth of the country. The post-harvest losses in PMFBY are covered on an individual farm basis for about 2 weeks after harvesting when the farmer has kept the produce in proper condition to dry in the field.

Causes of post-harvest losses in PMFBY

Some of the most prominent causes of post-harvest losses are explained below:

1. Inadequate Infrastructure:

   As mentioned earlier, transportation networks, insufficient storage facilities, and market infrastructure can contribute to post-harvest losses. Farmers can struggle to preserve their produce without proper facilities. By investing in adequate transportation infrastructure and modern storage solutions can significantly reduce such losses.

2. Market Constraints and Lack of Information:

   Many farmers have limited access to markets, and they also face price volatility, which can force them to sell their harvested produce quickly at lower prices resulting in substantial financial loss. Enhancing market linkages and establishing mechanisms for fair pricing can curb this challenge.
   Farmers may not have enough information about pricing trends and market demand, which can lead to ill-informed decisions after harvesting. PMFBY has certain initiatives that can empower farmers with real-time insights about the market.

3. Poor Handling Practices:

   If harvested crops are handled improperly during storage and transportation, it can lead to physical damage and deterioration of the crops. Training programs can be used to educate farmers about proper handling practices and minimizing damage during storage and transportation.

4. Pests and Diseases:

   Infestations of pests and diseases during storage can affect the quality and market value of the produce and lead to post-harvest losses. PMFBY supports pest management practices that can help address this challenge.

In order to address post-harvest losses, a multifaceted approach is required to deal with such a complex task. By acknowledging the problem and incorporating strategies to mitigate post-harvest losses can increase the overall success of agricultural risk management.

PMFBY Risk Management Post-Harvest

PMFBY contributes to manage post-harvest losses through the following mechanisms:

1. Financial Security:

   By providing insurance coverage for pre-harvest risks to farmers, PMFBY ensures that they have the financial security required to function optimally. Such a financial cushion can indirectly be helpful in preventing or managing post-harvest losses. Farmers may invest in better infrastructure to store and transport their produce.
   Did you know that PMFBY compensation for post-harvest damages is available up to a period of 14 days from harvesting for crops that are kept in “cut & spread” condition for proper storage? This coverage is valid against cyclonic ratings, unseasonal rains, and specific periods of cyclones throughout the country.

2. Technological Support:

   PMFBY encourages farmers to adopt modern agricultural technology and practices, which can translate to improved storage techniques and pest control measures. Additionally, farmers can also invest in storage monitoring solutions to detect pest infestations early and keep a tab on their facility.

3. Training and Awareness:

   PMFBY scheme has certain programs, such as the Agriculture Risk Resilience Insurance Access Program (ARRIA), to raise awareness amongst farmers and train them. By educating farmers about post-harvest best practices, effective storage methods, and market trends, PMFBY aims to minimize their losses.

4. Crop Diversification:

   Since PMFBY provides insurance for various crops, it also encourages crop diversification. This is an effective strategy to reduce the risks associated with market constraints for specific crops that can impact post-harvest losses indirectly. Crop diversification can ensure a relatively stable income for farmers.

5. Other Government Initiatives:

   There are many schemes and programs initiated by the government to improve post-harvest infrastructure for farmers, including market linkages and adequate storage facilities. Surely, collaborative efforts of the government combined with the private sector and farmers can lead to sustainable solutions that support economic growth.

PMFBY and post-harvest agricultural storage losses

A crop insurance and storage loss program, such as the Pradhan Mantri Fasal Bima Yojana Pradhan Mantri Fasal Bima Yojana, is an important financial instrument for farmers to maximize their profits resulting from their hard work. Many factors, including poor handling practices and inadequate infrastructure, contribute to post-harvest losses. However, PMFBY contributes to managing such loss by raising awareness, providing financial security, and encouraging the adoption of technology and crop diversification.

Farmers can secure their livelihood to a large extent by investing in schemes like PMFBY from reputable companies that also provide general insurance in India.

FAQs

What is PMFBY?
The Pradhan Mantri Fasal Bima Yojana or PMFBY is a crop insurance plan for farmers of India that aims to provide them financial support in case any of the notified crop fails as a result of pests, diseases, and natural calamities.

How can PMFBY help farmers with post-harvest losses?
PMFBY encourages farmers to adopt innovative and modern agricultural practices that enhance their abilities to reduce the risks to their produce by deploying smart solutions to storage and transportation problems. The scheme also ensures the flow of credit to the agriculture sector.

Who is eligible for PMFBY?
Farmers who are growing crops in a set area after notifying the authorities during the season are usually eligible. For more information consider contacting our expert.

What risks are covered in PMFBY?
The following risks leading to crop losses are covered under PMFBY:

• Natural fire and lightning
• Cyclone, storm, etc.
• Floods
• Drought
• Pests and diseases

What are the main causes of post-harvest losses in PMFBY?
Generally, poor handling practices, lack of information and resources, and pests and diseases affect the crops during storage or transportation and lead to post-harvest losses.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.