9 Years of Pradhan Mantri Fasal Bima Yojana

February 18, 2025

On February 18, 2025, the Pradhan Mantri Fasal Bima Yojana (PMFBY) celebrated its nine-year anniversary. Launched in 2016 by Prime Minister Narendra Modi, this scheme has become a vital tool for stabilising farmers’ incomes and encouraging innovative agricultural practices.

About PMFBY

The PMFBY aims to protect farmers from financial distress caused by unpredictable natural calamities.
It covers losses from events such as droughts, floods, hailstorms, and pest attacks.
The scheme has been instrumental in providing timely financial support, enabling farmers to recover from losses and continue their agricultural activities.

Government Support and Budget

Recently, the Union Cabinet approved the continuation of PMFBY and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) until 2025-26. The total budget allocated for these schemes is ₹69,515.71 crore.

Technological Advancements

The PMFBY leverages advanced technologies like satellite imagery, drones, and remote sensing. These technologies are used for crop area estimation, yield assessment, and loss evaluation. The introduction of the YES-TECH system in Kharif 2023 enhances the accuracy of yield estimates, facilitating timely and fair claim settlements.

Key Benefits of PMFBY

The scheme offers several advantages. Farmers pay a maximum premium of 2% for Kharif crops and 1.5% for Rabi crops, with the rest subsidised by the government. It provides comprehensive coverage for various risks, ensuring that farmers receive compensation within two months of harvest. This quick payout helps farmers avoid debt traps.

Types of Risks Covered

PMFBY covers yield losses from non-preventable risks such as natural disasters and pests. It also includes provisions for prevented sowing, allowing farmers to claim indemnity when adverse weather prevents planting. Post-harvest losses and localised calamities are also addressed under the scheme.

Increasing Participation

Since its inception, PMFBY has seen rise in participation. In 2023-24, non-loanee farmers constituted 55% of total coverage, indicating growing trust in the scheme. Some states have even waived farmers’ premium contributions, further reducing their financial burden.

Global Significance

PMFBY is now the largest crop insurance scheme in the world based on farmer applications. Its success has set a benchmark for similar initiatives globally.

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