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Pradhan Mantri Fasal Bima Yojana
Context:
PMFBY, launched on February 18, 2016, by Prime Minister Narendra Modi, is celebrating its 9th anniversary in 2025.
Overview
- The scheme aims to protect farmers from crop losses due to natural calamities like droughts, floods, hailstorms, diseases, and pests.
- It provides financial support to farmers, stabilising their income and encouraging innovative agricultural practices.
- Eligibility and Voluntary Participation: Though voluntary, non-loanee farmers’ participation in the scheme has increased to 55% in 2023-24, demonstrating growing trust and acceptance.
Scheme Continuation & Budget
- Union Cabinet Approval (January 2025): PMFBY & Restructured Weather-Based Crop Insurance Scheme (RWBCIS) extended until 2025-26.
- Budget allocation: ₹69,515.71 crore.
- RWBCIS: A weather index-based insurance scheme introduced alongside PMFBY.
- Difference between PMFBY and RWBCIS:
- PMFBY: Uses actual yield assessment for claim calculation.
- RWBCIS: Uses weather parameters to determine losses and compensation.
Technological Advancements in PMFBY
- Use of modern technology like: Satellite imagery, drones, Unmanned Aerial Vehicles (UAVs), and remote sensing.
- Crop Cutting Experiments (CCEs) & loss assessment through remote sensing.
- CCE-Agri App: Direct data upload to the National Crop Insurance Portal (NCIP).
- State land records integration with NCIP for better accuracy.
- YES-TECH (Yield Estimation System Based on Technology): Introduced from Kharif 2023. Blends manual and technology-based yield estimates. Reduces dependence on manual assessments for quicker, more accurate claim settlements.
Key Benefits
- Affordable Premiums: Farmers pay a maximum of 2% for Kharif food crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops, with the government subsidising the remaining premium.
- Comprehensive Coverage: Covers natural disasters, pests, diseases, and post-harvest losses due to local risks.
- Timely Compensation: Claims are processed within two months of harvest to prevent farmers from falling into debt.
Risks Covered
- Yield Losses: Coverage for losses due to non-preventable risks such as fires, floods, storms, pests, diseases, etc.
- Prevented Sowing: Farmers unable to sow due to adverse weather conditions can claim indemnities of up to 25% of the sum insured.
- Post-harvest Losses: Coverage of up to 14 days from harvesting for stored crops.
- Localised Calamities: Coverage for losses caused by localised risks like hailstorms, landslides, and inundation.
Strengthening PMFBY
- Government interventions to improve transparency, accountability, and timely claim payments.
- Highest-ever farmer participation in 2023-24.
- PMFBY is now the largest crop insurance scheme globally in terms of farmer applications.
- Some state governments waive off farmers’ share of premiums, reducing their financial burden.
