Context:
The central Government celebrated the ninth anniversary of Pradhan Mantri Fasal Bima Yojana on 18th February.
More on the News
- PMFBY has disbursed Rs 1.75 lakh crore in claims to more than 23.22 crore farmers across 23 states and UTs over the past nine years
- In January 2025, The Union Cabinet approved the continuation of Pradhan Mantri Fasal Bima Yojana till 2025-26 with a total budget of ₹69,515.71 crore.
Key achievements of the scheme:
- Since its launch, the government has made several interventions to enhance transparency and accountability, resulting in record-high farmer participation in 2023-24.
- In 2023-24, non-loanee farmers’ coverage increased to 55% of the total coverage while the total sum insured stands at Rs.17.29 lakh crore.
- Till the 2023-24 season, 63.19 crore farmer applications over an area of 42.21 crore hectares for a sum insured of Rs. 17,29,395 crore have been insured under the scheme.
- The scheme witnessed a 25% growth in farmer enrolment in 2023-24 compared to the previous year, showing its growing popularity.
- The Gross Cropped Area (GCA) covered in 2023-24 was 604 lakh Ha (hectare) as compared to 501 lakh Ha. in 2022-23.
Pradhan Mantri Fasal Bima Yojana
- Launched on 18th February 2016, “Pradhan Mantri Fasal Bima Yojana” is a crop insurance scheme by the Department of Agriculture, Cooperation and Farmers’ Welfare, Ministry of Agriculture.
- PMFBY aims to provide financial protection to farmers against crop loss due to natural disasters (hail, drought, famine), pests, and diseases.
- PMFBY provides crop insurance at a cost-effective premium to all Indian farmers.
- PMFBY is an affordable crop insurance product implemented through a network of insurance companies and banks.
- The scheme covers over 50 crore farmers and provides insurance coverage for over 50 different crops.
- As of February 2024, 27 States/ Union Territories (UTs) have implemented the scheme in one or more seasons since inception.
Risk covered under the scheme:
- Yield Losses (Standing Crops): Covers yield losses due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Tornado, Floods, Landslide, Pests and Diseases, and Drought.
- Prevented Sowing: Covers farmers who are unable to plant crops due to unfavourable weather conditions. Eligible for indemnity claims of up to 25% of the sum insured.
- Post-harvest Losses: Coverage is available for up to 14 days after harvesting for crops stored in “cut and spread” condition (crops left in the field to dry).
- Localised Calamities: Provides coverage for losses from localised calamities affecting specific farmlands in a notified area.
Key Benefits of the Scheme
Affordable Premiums: The maximum premium payable by the farmer will be 2% for the Kharif food and oilseed crops.
- For rabi food and oilseed crops, it is 1.5% and for yearly commercial or horticultural crops, it will be 5%.
- The remaining premium is subsidized by the government.
Technology-Driven Implementation: PMFBY integrates advanced technologies like satellite imagery, drones, Unmanned Aerial Vehicles (UAV) and remote sensing for Crop Cutting Experiments (CCEs) planning, yield estimation, loss assessment, etc.
Timely Compensation: PMFBY aims to process claims within two months of the harvest.