The Pradhan Mantri Fasal Bima Yojana (PMFBY), a scheme providing comprehensive coverage for farmers against crop losses caused by unpredictable natural disasters, has disbursed Rs 1.75 lakh crore in claims to more than 23.22 crore farmers over the past nine years, according to the Ministry of Agriculture & Farmers Welfare.
Launched in 2016 by Prime Minister Narendra Modi, PMFBY has played a crucial role in stabilizing farmers’ incomes while promoting the adoption of innovative agricultural practices.
The scheme witnessed a 25% growth in farmer enrolment in 2023-24 compared to the previous year, demonstrating its growing popularity.
The Union Cabinet, recognizing PMFBY’s impact, approved its continuation along with the Restructured Weather Based Crop Insurance Scheme (RWBCIS) till 2025-26, with a budget of Rs.69,515.71 crore. RWBCIS, introduced alongside PMFBY, is a weather index-based scheme that complements PMFBY’s crop insurance approach.
Technological Advancements in PMFBY
PMFBY integrates advanced technology, including satellite imagery, drones, and remote sensing, to enhance transparency and accuracy in crop area estimation, yield disputes, and loss assessments. The introduction of YES-TECH (Yield Estimation System Based on Technology) from Kharif 2023 allows for more accurate yield loss assessments, blending technology-based and manual estimates to improve claim settlements.
Key Benefits of PMFBY
Farmers pay an affordable premium of 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticultural or commercial crops, with the remaining premium subsidized by the government. PMFBY covers a wide range of risks, including natural disasters, pests, diseases, and post-harvest losses due to local calamities like hailstorms and landslides. Claims are processed within two months of harvest to provide timely compensation, preventing farmers from falling into debt traps.
Risks Covered by PMFBY
The scheme provides insurance for yield losses due to natural disasters, pests, and diseases. Farmers prevented from sowing due to adverse weather conditions are eligible for indemnity claims of up to 25% of the sum insured. Post-harvest losses are covered for up to 14 days after harvest, and localized hazards like hailstorms or landslides affecting individual farms are also insured.
Strengthening PMFBY
Since its launch, the government has made several interventions to enhance transparency and accountability, resulting in record-high farmer participation in 2023-24. The scheme is now the largest crop insurance program in the world, with some states further reducing farmers’ premium burdens by waiving their share.
Achievements of PMFBY
The scheme has paid out Rs.1.75 lakh crore in claims since its inception and has been implemented across 23 states and Union Territories. In 2023-24, non-loanee farmers’ coverage increased to 55% of the total coverage, highlighting the growing voluntary adoption of the scheme. The total sum insured stands at Rs.17.29 lakh crore.
