Pradhan Mantri Fasal Bima Yojana

Key Highlights:

• The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched on 18 February 2016, offers comprehensive crop insurance against natural calamities.
• Since its inception till Rabi 2025-26, the scheme has insured over 92.46 crore farmer applications and paid claims exceeding ₹2.06 lakh crore.
• A significant allocation of ₹12,200 crore has been made for PMFBY in the Union Budget 2026–27, reinforcing its commitment to farmer coverage.
• Farmers pay low premiums (2% for Kharif, 1.5% for Rabi foodgrains/oilseeds, 5% for commercial/horticultural crops), with the remaining subsidized by Central and State Governments.
• Digital initiatives like Yield Estimation System based on Technology (YES-TECH) and Weather Information Network and Data System (WINDS) enhance claim settlement efficiency.
• Major agricultural states including Andhra Pradesh, Jharkhand, West Bengal, and Bihar have rejoined or decided to implement PMFBY, indicating growing confidence.

Detailed Insights:

• PMFBY covers risks from pre-sowing (prevented sowing), widespread mid-season adversity, localized calamities, and post-harvest losses.
• The scheme aims to stabilize farmers’ incomes, protect livelihoods, and support climate-resilient agriculture by providing financial coverage against crop losses.
• It provides inclusive coverage to both loanee and non-loanee farmers, as well as tenant farmers and sharecroppers, subject to eligibility conditions.
• Non-loanee farmers voluntarily enroll, constituting approximately 50% of all farmers insured over the last 10 years.
• Coverage includes yield losses (area-based), prevented sowing (up to 25% of sum insured), post-harvest losses (up to 14 days), and localized calamities.
• Losses from war, nuclear risks, riots, theft, and preventable risks are explicitly excluded from the scheme's coverage.
• The Central and State Governments subsidize the remaining premium in a 50:50 ratio, which is 90:10 for North-Eastern and Himalayan States/UTs.
• The National Crop Insurance Portal (NCIP) facilitates digital farmer enrolment, subsidy administration, and electronic transfer of claims directly to farmers' bank accounts.
• Integration of land records with NCIP ensures digital validation of insured areas, with 85% of the insured area in participating states now validated.
• The Digiclaim Module, introduced in Kharif 2022, has processed over ₹55,000 crore in claims through NCIP and the Public Finance Management System (PFMS).
• The CCE-Agri App enables digital capture and uploading of Crop Cutting Experiment (CCE) yield data, crucial for calculating eligible claims.
• YES-TECH uses remote sensing and technology-based methods for fair and accurate crop yield estimates, with its weightage increasing up to 50% in certain states.
• WINDS employs Automatic Weather Stations and Rain Gauges to collect hyperlocal weather data, supporting schemes like Restructured Weather-Based Crop Insurance Scheme (RWBCIS).
• Collection of Real-time photos and Observations of Crops (CROPIC) uses geo-tagged photographs for periodic validation of crop health and damage assessment.
• The Krishi Rakshak Portal & Helpline (KRPH) (toll-free 14447) provides a dedicated channel for farmers to register grievances and seek assistance, with a high resolution rate.
• The RWBCIS complements PMFBY by addressing risks specifically arising from adverse weather conditions, using weather parameters as a proxy for crop damage.
• RWBCIS operates on an "Area Approach" and is popular for fruits, vegetables, and plantation crops, sharing similar affordable premium rates as PMFBY.

Key Concepts Involved:

• Pradhan Mantri Fasal Bima Yojana (PMFBY): A government-sponsored crop insurance scheme providing financial support to farmers suffering crop loss/damage due to unforeseen events.
• Restructured Weather-Based Crop Insurance Scheme (RWBCIS): A scheme offering insurance protection against weather-related risks, using weather parameters as a proxy for crop damage.
• Yield Estimation System based on Technology (YES-TECH): A technology-driven system utilizing remote sensing for fair and accurate crop yield estimates.
• Weather Information Network and Data System (WINDS): A system collecting hyperlocal weather data from Automatic Weather Stations and Rain Gauges for agricultural applications.
• National Crop Insurance Portal (NCIP): A digital platform facilitating farmer enrolment, subsidy administration, claim processing, and information dissemination for crop insurance.