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 correctly?

Statement 2 is correct and statement 1 is wrong, so the answer is B.

The premium under PMFBY is not uniform. Farmers pay 2 per cent of the sum insured for kharif crops, 1.5 per cent for rabi crops, and 5 per cent for annual commercial and horticultural crops. The flat 2 per cent figure is only the kharif rate, so statement 1 is false.

Statement 2 is true. PMFBY covers localised calamities such as hailstorm, landslide, inundation and cyclone. It also covers post-harvest losses for up to 14 days after harvest, where cyclone or unseasonal rain damages produce kept in the field for drying. The core concept is risk-based crop insurance with differentiated premium, and it connects to the GS3 agriculture and food security debate on crop insurance uptake, state subsidy burden and claim settlement delays. Premium rates and coverage details have been revised in later seasons, so check the current operational guidelines before relying on specific figures.

Trap: assuming one premium rate applies to all crops and seasons, and rejecting statement 2 because insurance is thought to cover only pre-harvest losses.