On February 18, 2025, the Pradhan Mantri Fasal Bima Yojana (PMFBY) celebrates its nine-year journey, having made significant strides in supporting Indian farmers since its launch in 2016 by Prime Minister Narendra Modi. The scheme provides farmers with a comprehensive safety net against crop losses caused by unpredictable natural disasters, ensuring income stability and encouraging innovation in farming practices.
Protecting Farmers from Natural Calamities
PMFBY was created to shield farmers from the financial risks posed by natural calamities such as floods, droughts, hailstorms, cyclones, and pest attacks. Its primary objective is to provide timely financial assistance to farmers suffering from crop losses, helping them recover and continue their agricultural activities despite the challenges posed by climate change and other environmental factors.
Continued Support with Enhanced Budget
In recognition of its success, the Union Cabinet approved the continuation of PMFBY and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) until 2025-26, with a substantial budget allocation of Rs69,515.71 crore. RWBCIS, introduced alongside PMFBY, uses weather data to determine crop loss claims, differing from the traditional methods employed by PMFBY.
Technological Advancements for Accurate Assessments
One of the defining features of PMFBY is its incorporation of advanced technologies to improve transparency, efficiency, and accuracy in claim assessments. Satellite imagery, drones, unmanned aerial vehicles (UAVs), and remote sensing are used for crop area estimation, yield verification, and loss assessment. These innovations help reduce human error and ensure quicker, more accurate settlements.
Additionally, the introduction of the YES-TECH system in 2023 has further improved yield estimation and claim assessment, combining technology-based estimates with traditional manual methods to streamline the process.
Key Benefits of PMFBY
PMFBY offers several key benefits to farmers:
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Affordable Premiums: Farmers pay minimal premiums—2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial or horticultural crops. The government covers the remaining premium cost.
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Comprehensive Coverage: The scheme protects against a wide range of risks, including natural disasters, pest attacks, diseases, and post-harvest losses.
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Timely Compensation: Claims are processed within two months of harvest, ensuring farmers receive compensation quickly, helping them avoid financial strain.
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Technology-Driven Implementation: The use of cutting-edge technology enables accurate crop loss estimation and efficient claim settlement, ensuring transparency and fairness.
Coverage Details: What is Protected?
PMFBY provides coverage for several types of risks:
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Yield Losses: This covers losses due to non-preventable risks such as floods, storms, hailstorms, droughts, and pest infestations.
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Prevented Sowing: If farmers are unable to sow crops due to adverse weather, they are eligible for indemnity claims up to 25% of the sum insured.
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Post-Harvest Losses: The scheme also provides coverage for post-harvest losses for up to 14 days for crops stored in specific conditions.
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Localised Calamities: Farmers affected by localized hazards such as hailstorms, landslides, or inundation can also avail of this coverage.
Strengthening the Scheme for Better Transparency and Access
Since its launch, PMFBY has undergone several improvements to enhance transparency, accountability, and the timely settlement of claims. As a result, the number of farmers covered under the scheme has reached an all-time high, with increased voluntary participation, especially from non-loanee farmers. In some states, the government has also waived the farmers’ share of the premium, significantly reducing their financial burden.
A Decade of Empowering Farmers
As PMFBY enters its next phase, it continues to be a critical tool in transforming Indian agriculture. By offering comprehensive coverage, affordable premiums, and leveraging advanced technology, the scheme ensures that farmers are well-protected against the risks of natural disasters. With its growing reach and increasing trust among farmers, PMFBY remains a cornerstone in building a resilient and sustainable agricultural sector in India.
