Pradhan Mantri Fasal Bima Yojana, 2025

Introduction

The Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) have settled 97% of all filed claims nationwide, according to the Ministry of Agriculture and Farmers Welfare. While the settlement rates in Tripura, Andaman & Nicobar Islands, Andhra Pradesh, and Sikkim range from 91% to 51%, complete claim settlement has been reached in Goa, Chhattisgarh, Telangana, and Tamil Nadu.

What is Pradhan Mantri Fasal Bima Yojana?

  • A Central Sector Scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced in 2016 to provide farmers with financial protection against agricultural losses brought on by pests, diseases, or natural catastrophes.
  • In terms of the number of farmers registered and the land area covered, PMFBY surpassed all other crop insurance programs in the globe as of 2023–2024.

What are Key Features of Pradhan Mantri Fasal Bima Yojana?

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has several key features designed to protect farmers from financial loss due to crop damage.

  • Affordable Premium Rates
    • Crops in Kharif 2% of the total insured is paid by farmers.
    • The harvests of Rabi 1.5% of the total insured is paid by farmers.
    • The premium for commercial and horticultural crops is 5% of the total covered.
    • The Central Government and the State Governments split the remaining premium evenly and with subsidies.
  • Comprehensive Risk Coverage
    • Natural disasters such as floods, landslides, hailstorms, drought, etc.
    • Insects and illnesses
    • Cyclones and unseasonable precipitation can cause post-harvest losses up to 14 days after harvest.
    • Individual farms being impacted by local disasters like landslides or hailstorms.
  • All Farmer Inclusion
    • Farmers who are loanees—those who have crop loans—and non-loanees—those who do not—are both qualified.
    • For loanee farmers, coverage is required; for others, it is optional.
  • Use of Technology
    • Drones, cellphones, and remote sensing are used to estimate crop losses more quickly and precisely.
    • Claims funds are transferred directly to farmers’ bank accounts via Direct Benefit Transfer, or DBT.
  • Area-Based Approach
    • Insurance is not based on individual farms, but rather on the produce of a notified region, which is typically a town or block.
  • Transparency and Monitoring
    • Utilizing the National Crop Insurance Portal (NCIP) can enhance transparency and expedite processes.
    • Routine observation by the federal and state governments.
Pradhan Mantri Fasal Bima Yojana

What are the Eligibility Criteria for Pradhan Mantri Fasal Bima Yojana?

  • Eligible Farmers: Coverage is available to all farmers growing notified crops in notified locations, including tenant farmers and sharecroppers.
  • Insurable Interest: Farmers must have an insurable interest in the crops they are insuring, which means they should be financially liable in the event that the crop fails.
  • Documentation Requirements
    • Loanee Farmers: Eligible farmers are those who have taken out Kisan Credit Card (KCC) or Seasonal Agricultural Operations (SAO) loans for designated crops.
    • Non-Loanee Farmers: Must provide the required documentation of land records that are currently in effect in the state, such as Land Possession Certificates (LPC), Records of Right (RoR), or pertinent contract/agreement data.
  • Exclusivity of Claims: For farmers to be eligible for PMFBY claims, they must not have received compensation for the same crop loss from any other source.
  • Enrollment Process: The closest Common Service Centers (CSCs), bank offices, or approved insurance brokers are the places where farmers can enroll. For each planting season, the enrollment deadline set by the relevant State Government must be met.
  • Special Focus Groups: The program prioritizes the highest possible coverage of women farmers, Scheduled Tribes (ST), and Scheduled Castes (SC). These groups’ land holdings in the corresponding state clusters should be reflected in the allocation and use of the PMFBY budget.

How does Pradhan Mantri Fasal Bima Yojana work?

  • Crop Notification by the State
    • The crops covered
    • The notified areas (like blocks or villages)
    • The cutoff dates for enrollment
    • The sum insured for each crop
  • Farmer Enrollment
    • Loanee farmers (those with crop loans) are automatically enrolled.
    • Non-loanee farmers (without crop loans) can enroll voluntarily through Banks, Common Service Centers (CSCs), The official PMFBY portal-pmfby.gov.in
  • Premium Payment
    • 2% for Kharif crops
    • 1.5% for Rabi crops
    • 5% for horticultural/commercial crops
    • The remaining premium is paid by the central and state governments.
  • Risk Assessment and Crop Loss Monitoring
    • Natural calamities (drought, floods, hailstorms)
    • Pests and diseases
    • Localized calamities
    • Post-harvest losses (up to 14 days)
  • Yield Estimation
    • Yield is estimated using Crop Cutting Experiments (CCEs) at the village/block level.
    • If the actual yield is lower than the threshold yield, claims are triggered.
  • Claim Settlement
    • Claims are calculated based on the shortfall in yield.
    • Compensation is directly transferred to farmers’ bank accounts using DBT (Direct Benefit Transfer).
  • Grievance Redressal
    • Farmers can track claim status and file grievances through the PMFBY portal or their local banks/CSCs.

What Challenges Faced by Pradhan Mantri Fasal Bima Yojana?

  • Delayed Claim Settlements
    • One of the most common complaints is the delay in compensation payouts to farmers.
    • Late submission of yield data by state authorities
    • Administrative bottlenecks
    • Disputes between state governments and insurance companies
  • Low Farmer Awareness
    • Many farmers are unaware of the scheme, its benefits, or the enrollment process.
    • Lack of grassroots-level promotion and support leads to under-enrollment, especially among small and marginal farmers.
  • Inadequate Use of Technology
    • Despite the plan to use drones, remote sensing, and mobile apps, many areas still rely on manual crop-cutting experiments (CCEs).
    • This slows down loss assessment and can lead to inaccuracies.
  • Lack of Transparency
    • There is often poor communication between stakeholders—farmers, insurance companies, and local government officials.
    • Farmers sometimes don’t even know if they are enrolled or what their coverage includes.
  • High Premium Burden on Government
    • The government (both central and state) shares a significant portion of the premium.
    • States have occasionally defaulted or delayed their premium payments, leading to the suspension of the scheme in those areas.
  • Coverage Gaps
    • The scheme doesn’t cover pre-sowing losses or losses due to market price crashes.
    • Tenant and sharecropper farmers often lack formal land documents, which hinders their enrollment.

Conclusion

For millions of Indian farmers, the Pradhan Mantri Fasal Bima Yojana (PMFBY) is a sign of optimism rather than merely an insurance program. Even while there are obstacles, the current state of growth is encouraging. Crop insurance in India may soon become a worldwide standard with more reforms, increased awareness, and technological advancements.

Frequently Asked Questions (FAQs)

  • Who is eligible for Pradhan Mantri Fasal Bima Yojana (PMFBY)?

    All farmers growing notified crops in notified areas, whether they’ve taken a loan or not.

  • How is the premium calculated?

    Premiums are fixed percentages of the insured sum, with most of the cost covered by the government.

  • How can a farmer claim insurance?

    By reporting crop loss to the insurer or local authority within 72 hours of damage via mobile app or bank.

  • What crops are covered?

    PMFBY covers cereals, pulses, oilseeds, and horticulture crops.

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