Introduction
The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched on 18th February 2016 to provide affordable crop insurance coverage to farmers and protect them against crop losses due to natural calamities and production risks. The scheme represents a significant intervention in India's agricultural sector, addressing the vulnerability of farmers to climate-related uncertainties.
Key Facts About PMFBY
Premium Structure
- Kharif crops: Farmers pay 2% premium for foodgrain and oilseed crops
- Rabi crops: Farmers pay 1.5% premium for foodgrain and oilseed crops
- Commercial and horticultural crops: Maximum premium of 5%
- Government share: Central and State Governments share the remaining premium in 50:50 ratio
- North-Eastern and Himalayan States: Benefit from 90:10 subsidy ratio
Risk Coverage Under PMFBY
Pre-Sowing Risks
- Farmers who incur cultivation expenses but cannot sow due to adverse weather conditions
- Claims up to 25% of the sum insured are eligible
Standing Crop Losses
- Area-based insurance against non-preventable risks:
- Drought
- Floods
- Inundation
- Cyclones
- Hailstorms
- Lightning
- Pests and diseases
Post-Harvest Losses
- Crops in cut-and-spread condition for drying covered for up to 14 days
- Covered against cyclones and unseasonal rainfall
Localized Calamities
- Individual farm-level losses from:
- Hailstorms
- Landslides
- Inundation
- Cloudbursts
- Natural fires
Excluded Risks
- War, nuclear risks, riots, theft, negligence, preventable risks, and unspecified post-harvest conditions
Inclusive Coverage of Farmers
Eligible Categories
- Loanee farmers: Those availing seasonal crop loans or Kisan Credit Card (KCC)-linked loans
- Non-loanee farmers: Voluntary enrollment available
- Tenant farmers and sharecroppers: Coverage extended upon meeting eligibility conditions
Key Statistics
- ~50% of enrolled farmers on average have been non-loanee farmers (indicating voluntary participation)
- Record enrollment in 2024-25: 15.23 crore farmer applications, covering 4 crore farmers and 623 lakh hectares
- Currently implemented in 25 States and Union Territories during Kharif 2026
Digital Innovations Strengthening PMFBY
National Crop Insurance Portal (NCIP)
- Digital platform for farmer enrolment
- Subsidy management and stakeholder coordination
- Automated claim calculation
- Direct electronic transfer of claims to farmers' bank accounts
- Integration with state e-land records (covering ~85% of insured areas)
YES-TECH (Yield Estimation System Based on Technology)
- Uses remote sensing and technology-based methods
- Introduced for paddy, wheat (Kharif 2023), and soybean (Kharif 2024)
- Yield estimates contribute up to 50% weightage in certain States
WINDS (Weather Information Network and Data System)
- Uses Automatic Weather Stations and Automatic Rain Gauges
- Provides hyperlocal weather data at Block and Gram Panchayat levels
- Supports weather-based insurance, yield estimation, and disaster management
Digiclaim Module
- Introduced in Kharif 2022
- Enables transparent calculation, processing, and settlement of claims
- Claims transferred through Public Finance Management System (PFMS)
- Over ₹55,000 crore in claims processed through this platform
CCE-Agri App
- Digital recording and uploading of crop yield data
- Calculates actual yield for determining eligible claims
- Allows insurance companies to monitor Crop Cutting Experiments (CCEs)
Other Digital Tools
- CROPIC: Geo-tagged crop photographs for monitoring crop health
- KRPH Helpline (14447): Toll-free grievance registration, resolved 26.12 lakh grievances with 99.66% resolution rate
- AIDE App: Doorstep enrolment of non-loanee farmers
- CLAP: Faster assessment of localized crop losses
Restructured Weather-Based Crop Insurance Scheme (RWBCIS)
- Uses weather parameters as proxy for crop damage instead of actual yield losses
- Claims triggered when weather conditions deviate from predefined thresholds
- Covers: excess/deficit rainfall, dry spells, extreme temperature, humidity, wind speed
- Operates through Reference Unit Areas (RUAs)
- Premium structure same as PMFBY
- Particularly beneficial for fruit, vegetable, and plantation crops
Constitutional and Policy Context
- Article 38: State shall secure a social order for promotion of welfare of the people
- Article 48: State's agriculture and animal husbandry to be modern and scientific
- SDG Goal 1: End poverty in all its forms everywhere
- SDG Goal 2: End hunger, achieve food security and improved nutrition
Significance for Indian Agriculture
- Income Stability: Provides financial buffer against crop failures
- Climate Resilience: Addresses increased uncertainty due to climate change
- Technology Integration: Digital tools improve transparency and efficiency
- Financial Inclusion: Extends coverage to tenant farmers and sharecroppers
- Food Security: Protects agricultural production base
Progress and Achievements
| Metric | Value |
|---|---|
| Total Applications Insured | 92.46 crore |
| Total Claims Paid | ₹2.06 lakh crore |
| Record Enrollment (2024-25) | 15.23 crore applications |
| Farmers Covered (2024-25) | 4 crore |
| Area Covered (2024-25) | 623 lakh hectares |
| Budget Allocation (2026-27) | ₹12,200 crore |
| States/UTs Implementing | 25 |
Conclusion
PMFBY has emerged as a major pillar of India's agricultural risk management framework. By providing affordable insurance coverage against climate-related and production risks, the scheme has strengthened farmer resilience and income security. As India moves towards climate-resilient agriculture, PMFBY will remain crucial in protecting farmers, ensuring food security, and building a sustainable agricultural economy.