On February 18, 2025, the Pradhan Mantri Fasal Bima Yojana (PMFBY) marked its nine-year anniversary, reaffirming its significance in securing farmers’ livelihoods. Launched in 2016 by Prime Minister Narendra Modi, the scheme has played a crucial role in stabilizing agricultural incomes and promoting resilient farming practices across India.
About PMFBY: A Shield Against Agricultural Risks
PMFBY was introduced to protect farmers from the financial hardships caused by unpredictable natural calamities. It provides insurance coverage against:
- Droughts, floods, and hailstorms
- Pest attacks and crop diseases
- Prevented sowing due to adverse weather
- Post-harvest losses caused by unexpected calamities
By ensuring timely financial support, the scheme empowers farmers to recover from crop failures and sustain their agricultural activities without falling into debt traps.
Government Commitment and Budget Allocation
Recognizing its positive impact, the Union Cabinet recently extended PMFBY along with the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) until 2025-26. The budget allocation for these schemes stands at ₹69,515.71 crore, reflecting the government’s dedication to strengthening agricultural resilience.
Technological Innovations in PMFBY
To improve efficiency and transparency, PMFBY has integrated cutting-edge technologies, including:
- Satellite imagery and remote sensing for crop area estimation
- Drones for yield assessment and loss evaluation
- YES-TECH system (introduced in Kharif 2023) to enhance the accuracy of yield estimates and ensure swift claim settlements
These advancements have streamlined claim processing, reducing disputes and ensuring fair compensation for affected farmers.
Key Benefits of PMFBY
1. Affordable Premium Rates
Farmers pay only 2% premium for Kharif crops and 1.5% for Rabi crops, while the remaining amount is subsidized by the government. This makes insurance coverage affordable and accessible to even small and marginal farmers.
2. Quick and Hassle-Free Compensation
PMFBY ensures that farmers receive compensation within two months after harvest, preventing financial distress and supporting continuous agricultural investment.
3. Comprehensive Coverage Against Risks
The scheme covers a wide range of risks, from sowing failure to localized calamities, ensuring that farmers are financially secure throughout the crop cycle.
Rising Participation and Farmer Trust
Since its inception, PMFBY has witnessed a steady rise in farmer participation. Notably, in 2023-24, non-loanee farmers (who are not mandated to take insurance) accounted for 55% of total coverage, reflecting a growing trust in the scheme. Additionally, some state governments have waived premium contributions, further reducing the financial burden on farmers.
A Global Benchmark in Crop Insurance
With millions of farmer applications each year, PMFBY has become the largest crop insurance scheme in the world. Its success story has positioned India as a global leader in agriculture risk management, inspiring similar initiatives in other nations.
Summing Up
As PMFBY completes nine years, its impact on agricultural stability, farmer welfare, and rural prosperity is undeniable. With continuous technological advancements, policy improvements, and increased farmer participation, the scheme is set to play an even more significant role in India’s agricultural future.