Pradhan Mantri FasalBima Yojana (PMFBY)

Context:

The Government has reported record enrolment under PMFBY in 2024–25 with 4.19 crore farmers covered and ?1.83 lakh crore paid in claims since its launch in 2016.

From Crop Loss Protection to Technology-Driven Agricultural Security

Pradhan Mantri FasalBima Yojana (PMFBY)

Launch and Objective: Launched on 18 February 2016 to provide affordable, simple, and comprehensive crop insurance against non-preventable natural risks.
Coverage Scope: Entire crop cycle from pre-sowing to post-harvest, including storage losses due to notified calamities.
Core Principle: “One Nation, One Crop, One Premium” ensuring fairness and uniformity.

Achievements and Outreach

Farmer Enrolment: Increased 32% from 3.17 crore (2022–23) to 4.19 crore (2024–25), highest since inception.
Claims Paid: ?1.83 lakh crore to 22.67 crore farmers since 2016.
Non-Loanee Farmer Inclusion: Applications grew from 20 lakh (2014–15) to 522 lakh (2024–25), reflecting trust beyond credit-linked enrolment.

Scheme Benefits

Affordable Premiums: 2% for Kharif food/oilseeds, 1.5% for Rabi food/oilseeds, 5% for annual commercial/horticulture crops; balance shared between Centre & States (50:50, with special ratios for NE and Himalayan States).
Comprehensive Risk Coverage: Yield losses, prevented sowing (up to 25% of sum insured), post-harvest losses (up to 14 days), and localised calamities.
Timely Compensation: Target to process claims within two months post-harvest.

Technology-Driven Enhancements

National Crop Insurance Portal (NCIP): For online enrolment, monitoring, and direct claim transfers.
Digi Claim Module: Automated 12% penalty on delayed claims (from Kharif 2024).
YES-TECH: Remote sensing-based yield estimation for paddy, wheat (2023), soybean (2024).
WINDS: Expands automatic weather stations and rain gauges fivefold for hyper-local weather data integration.

Governance and Implementation Measures

ESCROW Accounts: States mandated to deposit premium share in advance (from Kharif 2025).
Awareness Drives: “Crop Insurance Week”, “FasalBimaPathshala”, and “Meri Policy Mere Haath”.
Grievance Redressal: KRPH Portal and Helpline (14447) for ticket-based complaint tracking.

Significance

Economic Security for Farmers: Reduces vulnerability to crop failures, preventing indebtedness.
Inclusivity: Sharp rise in non-loanee farmer enrolment indicates outreach beyond institutional credit beneficiaries.
Technology Integration: Enhances transparency and accuracy in crop loss estimation, reducing disputes and delays.

Challenges

Premium Payment Delays by States: Often hinder timely claim settlement.
Awareness Gaps: Small and marginal farmers may still lack clarity on procedures and entitlements.
Implementation Variability: Differences in State-level execution impact uniform benefits.

Way Forward

Strengthen Awareness Campaigns: Use Panchayati Raj platforms for deeper rural penetration.
Faster Claim Settlement Mechanism: Leverage AI-driven loss assessment to reduce claim processing time further.
Expand Parametric Insurance Models: Link payouts more directly to measurable weather or yield parameters for quicker disbursement.
Improve Data Integration: Seamless linking of land records, weather, and yield data for accurate risk profiling.