Effectiveness of Pradhan Mantri Fasal Bima Yojana as a Risk Management Tool in Odisha Swain Mamata1, Hembram Basanti Renu2, Patnaik Sasmita3 1Former Professor of Economics, Ravenshaw University, E-mail: mama_swain@hotmail.com 2Assistant Professor, Marwari College, Ranchi University, E-mail: basanti.renu@gmail.com 3Lecturer in Rural Development, Dept. of Economics, Ravenshaw University, Cuttack, Email: sasmita.mitu@yahoo.co.in, respectively Online Published on 08 February, 2024. Abstract The Pradhan Mantri Fasal Bima Yojana (PMFBY) is an area-based crop yield insurance scheme, which has been implemented in the state of Odisha in Eastern India since Kharif 2016.The study is based on a field survey conducted in the Bolangir district in Western Odisha. A total of 160 households comprising 80 loanee and 80 non-loanee PMFBY users were interviewed with pre-designed questionnaires. This study identifies major risk factors confronted by the farmers in the study area and evaluates the effectiveness of PMFBY in addressing such risks. The farmers in the study area reported drought as the major risk factor that they face in agriculture. They consider adoption of crop insurance, off-farm employment and maintenance of credit reserves as important tools that had the most potential to manage risk. The study reveals that most of the farmers were dissatisfied with PMFBY due to delays in compensation payment, large loss assessing unit, and individual, independent risk not being covered under the scheme. For improving its operational efficiency, they put forth some important suggestions, such as: incorporating more cash crops under the scheme, individual assessment of crop loss and quick settlement of claims. Top Keywords Agricultural risk, Crop insurance, Pradhan Mantri Fasal Bima Yojana, Risk management tools, Effectiveness, Odisha. Top |