Pradhan Mantri Fasal Bima Yojana completes nine years

IN NEWS

Pradhan Mantri Fasal Bima Yojana completes nine years

Introduction

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has completed nine years since its launch in 2016, marking a significant milestone in strengthening agricultural risk management in India. The scheme provides a comprehensive insurance cover to farmers against crop losses arising due to natural calamities, pests and diseases, thereby ensuring income stability and resilience in agriculture.

ANALYSIS

Significance of Crop Insurance in India

Crop insurance acts as a critical risk mitigation tool in Indian agriculture, which is highly vulnerable to climatic uncertainties. It provides financial support to farmers suffering losses due to:

• Natural disasters such as droughts, floods, cyclones, hailstorms
• Unseasonal rainfall and lightning
• Pest attacks and diseases

Thus, PMFBY plays a key role in reducing agrarian distress and preventing indebtedness.

Recent Policy Developments

The Union Cabinet (January 2025) approved:

• Continuation of PMFBY and Restructured Weather Based Crop Insurance Scheme (RWBCIS)
• Duration: till 2025-26
• Total Budget Allocation: ₹69,515.71 crore

This reflects the government’s continued commitment towards farmer welfare and agricultural stability.

PMFBY vs RWBCIS: Methodological Difference

• PMFBY: Based on actual yield losses determined through Crop Cutting Experiments (CCEs)
• RWBCIS: Based on weather index parameters (rainfall, temperature, humidity etc.)

Thus, the difference lies in the method of claim calculation, with RWBCIS relying on weather data rather than direct yield assessment.

Technological Advancements in Implementation

PMFBY has increasingly adopted advanced technologies to improve transparency and efficiency:

• Use of satellite imagery, drones, UAVs, and remote sensing
• Application in:
  • Crop area estimation
  • Yield estimation
  • Loss assessment
  • Prevented sowing assessment
• Introduction of CCE-Agri App:
  • Direct upload of Crop Cutting Experiment (CCE) data
  • Integration with National Crop Insurance Portal (NCIP)
• Launch of YES-TECH (Kharif 2023):
  • Technology-based yield estimation system
  • Gradual shift from manual to technology-driven assessments

These measures ensure greater accuracy, accountability, and timely claim settlement.

Key Features and Benefits of PMFBY

Affordable Premium Structure

• Kharif crops: 2%
• Rabi crops: 1.5%
• Commercial/Horticultural crops: 5%
• Remaining premium is subsidized by the government

Comprehensive Risk Coverage

• Covers:
  • Pre-sowing risks
  • Standing crop losses
  • Post-harvest losses (up to 14 days)
  • Localized calamities

Timely Compensation

• Claims targeted to be settled within two months of harvest

Technology-Driven Implementation

• Enhances precision in loss estimation
• Reduces delays and disputes

Risks Covered under PMFBY

• Yield Losses: Due to drought, flood, hailstorm, pest attack, etc.
• Prevented Sowing: Compensation up to 25% of sum insured
• Post-Harvest Losses: Coverage for 14 days after harvest
• Localized Calamities: Includes hailstorms, landslides, inundation

Performance and Impact

• Scheme has become the largest crop insurance scheme globally in terms of farmer applications
• Area and farmer coverage reached all-time high in 2023-24
• Non-loanee farmers constitute 55% of total coverage, indicating increasing voluntary participation
• Some states have waived farmer premium share, reducing financial burden

Implications

• Strengthens agricultural resilience against climate variability
• Promotes adoption of modern farming practices
• Enhances financial security and rural stability
• Supports inclusive growth in agriculture sector

STATIC PART (AS PER INPUT)

• Scheme Name: Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Launched: 2016
• Launched by: Prime Minister Shri Narendra Modi
• Associated Scheme: Restructured Weather Based Crop Insurance Scheme (RWBCIS)
• Technology Initiative: YES-TECH (introduced in Kharif 2023)
• Portal: National Crop Insurance Portal (NCIP)
• Mobile Application: CCE-Agri App
• Nature: Voluntary scheme for farmers

Updated – 17 Feb 2025 ; 10:30 PM | PIB