Pradhan Mantri Fasal Bima Yojana (PMFBY): A Farmer-Friendly Guide
Introduction and Background
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme launched by the Government of India to protect farmers from losses caused by natural calamities, weather events, pests and diseases. It started in 2016 and brings together earlier crop insurance plans into one strong system. The aim is to make sure farmers do not suffer financially when their crops fail due to events beyond their control.
Objectives of PMFBY
The main goals of PMFBY are:
✅ Provide financial protection to farmers against crop loss or damage.
✅ Stabilize farm income so farmers can continue farming without stress.
✅ Encourage use of modern agriculture practices.
✅ Ensure flow of credit (loans) and support for farming.
✅ Expand crop insurance coverage across all eligible farmers.
Crops Covered & Risks Insured
PMFBY covers a wide range of crops:
🌾 Food crops (like rice, wheat, millets, pulses)
🌻 Oilseeds
🌿 Commercial crops and horticultural crops
The scheme protects farmers from risks such as:
🌧️ Drought, floods, and excessive rain
🔥 Hailstorms, storm, cyclones
🐛 Pests and crop diseases
🌱 Prevented sowing due to bad weather
🌾 Post-harvest losses (for crops dried in the field)
📍 Localized disasters like landslides or cloudbursts
Premium Rates for Farmers
Under PMFBY, farmers pay a small portion of the insurance premium. The rest is shared by the Central and State Governments:
| Season / Crop Type | Farmer’s Premium (% of Sum Insured) |
|---|---|
| Kharif Crops | 2% |
| Rabi Crops | 1.5% |
| Commercial / Horticultural Crops | 5% |
The remaining amount of premium is paid by the Central and State Governments equally.
Role of Central & State Governments
Both Central and State Governments work together to make PMFBY successful:
🔹 The Central Government sets the policy, shares subsidized premium, and supervises the scheme.
🔹 The State Governments also share premiums and help implement the scheme on the ground.
🔹 Technology tools like digital land records, apps and satellite data make the claim process faster.
Claim Settlement Process: Step-by-Step
PMFBY ensures farmers get their claims quickly and transparently. Here’s how it works:
- Register under PMFBY: Farmers enroll before the deadline through online or local block offices.
- Pay the Premium: The small share is paid by the farmer (deducted from loan for loanee farmers).
- Report Crop Loss: If crops suffer loss, farmers report it through the official portal/app or through insurance agents.
- Assessment: Insurance companies assess crop damage using surveys, technology, satellite data.
- Claim Calculation: Based on crop damage and sum insured, the amount is calculated.
- Claim Payment: The approved amount is deposited directly into the farmer’s bank account (DBT).
Benefits for Small & Marginal Farmers
PMFBY is especially important for small and marginal farmers:
🌟 Affordable protection with low premium.
🌟 Quick financial support after crop loss.
🌟 Helps farmers avoid debt and distress.
🌟 Encourages use of better farming tools and techniques.
🌟 Supports farming stability and family wellbeing.
Challenges & Limitations
Though helpful, the scheme faces some real problems:
- Limited awareness among farmers in some areas.
- Delays in claim settlement due to data verification.
- Some cases of misleading agents and fraud reported.
- Enrollment and loss reporting can be complicated for marginal farmers.
Government keeps working to fix these issues.
Latest Updates & Improvements
- PMFBY has been approved to continue through 2025–26 with a strong budget.
- A new Fund for Innovation & Technology (FIAT) will improve transparency, speed and accuracy of claim assessments.
- More farmers are now using the scheme and receiving higher claim payments digitally.
- Some expansions include coverage for wild animal damage and waterlogging in recent updates.
Conclusion: Farmer-Friendly Takeaway
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a powerful safety net for Indian farmers. It brings peace of mind by protecting your hard-earned crops and providing quick money when nature causes damage. With low premium costs and strong government support, every farmer can plan farming without fear of loss.