UPSC Prelims 2016 GS Paper I · Q21 of 100 Economy medium

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?

  1. (a) 1 only
  2. (b) 2 only ✓ UPSC's answer
  3. (c) Both 1 and 2
  4. (d) Neither 1 nor 2

Why the answer is (b)

• Under PMFBY (2016) farmers pay a premium of 2% of sum insured for kharif food and oilseed crops, 1.5% for rabi crops and 5% for annual commercial/horticultural crops — not a uniform 2%, so statement 1 is wrong.

• Statement 2 is correct: the scheme covers post-harvest losses for up to 14 days for crops kept in 'cut and spread' condition in the field, from cyclones, cyclonic rains and unseasonal rains.

• It also covers prevented sowing and localised calamities like hailstorm and inundation.

• Hence 2 only, option (b).

Why the other options are wrong

(a) 1 only
Statement 1 is wrong: premium varies by season and crop type.
(c) Both 1 and 2
Statement 1 is wrong.
(d) Neither 1 nor 2
Statement 2 is correct: post-harvest losses are covered.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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