With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements.

1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.

2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

The correct answer is 2 only. This means Statement 1 is incorrect and Statement 2 is correct. Let us analyze each statement carefully with respect to the actual provisions of the Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016.

Understanding the Scheme:
PMFBY is a government-sponsored crop insurance scheme in India that aims to provide financial support to farmers suffering crop loss or damage due to unforeseen events. A key feature of this scheme is how the premium is structured across different seasons and crop types.

Statement 1 Analysis — "Farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year."

This statement is INCORRECT because the premium under PMFBY is not uniform across all seasons. The actual premium structure is differentiated by season, as follows:

- Kharif crops: Farmers pay a maximum of 2% of the sum insured.
- Rabi crops: Farmers pay a maximum of 1.5% of the sum insured.
- Annual Commercial and Horticultural crops: Farmers pay a maximum of 5% of the sum insured.

So while 2% applies to Kharif crops, it does not apply uniformly to all crops in all seasons. Rabi crops have a lower premium of 1.5%, and commercial/horticultural crops have a higher premium of 5%. The use of the word "uniform" and "any crop in any season" makes Statement 1 factually wrong. The premium is season-specific and crop-type-specific, not a flat 2% across the board.

Statement 2 Analysis — "This scheme covers post-harvest losses arising out of cyclones and unseasonal rains."

This statement is CORRECT. PMFBY does provide coverage for post-harvest losses. Specifically, the scheme covers losses that occur up to a maximum period of 14 days after harvesting, for crops that are kept in the field in a "cut and spread" condition to dry. Such losses are covered when they arise due to specific post-harvest perils, namely:

- Cyclone / Cyclonic rains
- Unseasonal / Untimely rains

This is a deliberate and important provision of the scheme because after harvest, crops are often left in the open field to dry before threshing, making them extremely vulnerable to sudden weather events like cyclones or unexpected rainfall. The inclusion of post-harvest coverage makes PMFBY more comprehensive than earlier crop insurance schemes.

Conclusion:
Statement 1 is incorrect because the premium is not uniform at 2% for all crops in all seasons — it varies (2% for Kharif, 1.5% for Rabi, and 5% for commercial/horticultural crops). Statement 2 is correct because PMFBY explicitly covers post-harvest losses caused by cyclones and unseasonal rains. Therefore, the correct answer is 2 only.