Pradhan Mantri Fasal Bima Yojana Turns Nine

Pradhan Mantri Fasal Bima Yojana (PMFBY), India’s flagship crop insurance scheme, has completed nine years since its launch on February 18, 2016, under the leadership of Prime Minister Narendra Modi. The initiative aims to provide comprehensive crop insurance to Indian farmers, safeguarding them against various risks like natural disasters, pests, and diseases. Over these nine years, the scheme has proven to be a vital tool for farmers, disbursing ₹1.75 lakh crore in claims to over 23.22 crore farmers. This has not only helped in stabilizing farmers’ incomes but also fostered a culture of innovation and sustainable agricultural practices.

How Does Pradhan Mantri Fasal Bima Yojana Benefit Farmers?

One of the key highlights of PMFBY is its affordability. Farmers are required to pay minimal premiums for crop insurance, which makes it highly accessible. For Kharif food and oilseed crops, the premium is capped at 2%, while Rabi crops have a premium of 1.5%. Commercial and horticultural crops are insured with a premium of 5%. The government bears the rest of the premium, making it a cost-effective solution for farmers. This has encouraged widespread adoption, helping many farmers protect their crops from unforeseen calamities.

Moreover, the scheme ensures that farmers are compensated in a timely manner. Claims are processed within two months of harvest, ensuring that farmers receive financial support quickly when they need it the most. This timely compensation has played a crucial role in ensuring that farmers can bounce back from losses caused by various risks like hailstorms, droughts, and other local risks.

What Technological Advancements Have Been Incorporated in PMFBY?

Over the years, PMFBY has embraced technology to make crop insurance more efficient and accurate. The scheme uses satellite imagery, drones, and remote sensing technology for assessing crop loss accurately. This technological intervention ensures that the claims process is precise and transparent. A significant advancement was introduced in Kharif 2023 with the launch of YES-TECH (Yield Estimation System Based on Technology), which further refines the accuracy of yield loss assessments, ensuring that farmers receive the correct compensation for their losses.

What Does the Future Hold for Pradhan Mantri Fasal Bima Yojana?

The future of PMFBY looks promising with continued government support. In January 2025, the Union Cabinet approved the continuation of PMFBY and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) for the 2025-26 period, with a significant budget allocation of ₹69,515.71 crore. This extension underscores the government’s commitment to providing long-term risk coverage for farmers against unpredictable natural calamities, thus ensuring a safety net for the agricultural community in India.

Impact on Farmers: A National Success Story

Since its inception, PMFBY has grown into the world’s largest crop insurance program, with over 23 states and Union Territories implementing the scheme. In the 2023-24 period, the number of non-loanee farmers covered under PMFBY surged to 55% of the total coverage, highlighting the increasing voluntary participation in the scheme. This shows that farmers are becoming more aware of the benefits of crop insurance and are voluntarily opting for coverage.

PMFBY has paid out a staggering ₹1.75 lakh crore in claims over the years, helping farmers recover from losses caused by unpredictable weather events and other calamities. This level of support has helped farmers sustain their livelihoods and has fostered resilience in the agricultural sector.

Empowering Farmers and Transforming Agriculture

Pradhan Mantri Fasal Bima Yojana is not just an insurance scheme, but a lifeline for millions of Indian farmers. It has proven to be a game-changer in ensuring that farmers have financial protection against unforeseen risks, ultimately fostering a more sustainable and resilient agricultural ecosystem in India. With its innovative approach, timely claims process, and technological advancements, PMFBY continues to evolve and help shape the future of Indian agriculture.

Summary of the news