Agriculture is the backbone of India’s economy, employing nearly 50% of the population. However, farming remains highly risky due to unpredictable weather, pest attacks, and natural disasters like floods, droughts, and cyclones. To protect farmers from financial losses, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016. This crop insurance scheme provides affordable premiums, wide risk coverage, and quick claim settlements, ensuring farmers receive financial support during crop failures. PMFBY not only helps stabilise farm income but also reduces dependence on high-interest loans. For farmers facing financial emergencies, options such as a loan against property can further provide additional financial support and stability by leveraging residential assets.
What is PMFBY?
PMFBY is one of the world's largest crop insurance schemes, providing risk coverage from pre-sowing to post-harvest stages. The scheme leverages satellite imagery, mobile applications, and digital claim processing to improve transparency and ensure faster compensation to farmers affected by crop losses.
Why was PMFBY introduced?
The scheme was introduced to solve key problems in Indian agriculture such as:
-High financial risk due to climate uncertainty
-Rising input costs (seeds, fertilizers, labour)
-Farmer debt and dependency on informal credit
Documents required for PMFBY registration
- Farmers need the following documents while applying for PMFBY:
- Aadhaar Card
- Identity proof
- Address proof
- Bank account passbook
- Land ownership records
- Crop sowing certificate
- Passport-size photograph
- Mobile number linked with Aadhaar
Tenant farming certificate (if applicable)
Submitting accurate documents helps ensure successful enrolment and timely claim settlement under the scheme.
PMFBY premium calculator – How premium is calculated?
Farmers can calculate their premium contribution using the PMFBY premium calculator available on the official portal.
Example calculation:
- Kharif Crop
- Sum Insured: Rs. 50,000
- Premium Rate: 2%
- Farmer Contribution: Rs. 1,000
- Rabi Crop
- Sum Insured: Rs. 50,000
- Premium Rate: 1.5%
- Farmer Contribution: Rs. 750
- Horticulture Crop
- Sum Insured: Rs. 50,000
- Premium Rate: 5%
- Farmer Contribution: Rs. 2,500
The remaining premium is heavily subsidised by the government, making crop insurance affordable for farmers.
Objectives of Pradhan Mantri Fasal Bima Yojana
The main objectives of PMFBY include:
- Provide financial support to farmers in case of crop failure
- Stabilise farmers’ income
- Encourage adoption of modern farming practices
- Ensure flow of credit to the agriculture sector
- Reduce farmer distress and indebtedness
- Promote financial inclusion through bank-linked insurance
Key features of Pradhan Mantri Fasal Bima Yojana
PMFBY offers extensive coverage with minimal financial burden on farmers. It integrates technology for faster and transparent claim settlement. The scheme covers pre-sowing to post-harvest losses, making it comprehensive compared to earlier policies.
- Low premium rates for farmers
- Coverage for food crops, oilseeds, and horticulture crops
- Use of satellite imagery and mobile applications
- Faster claim settlement through digital processes
- Coverage from sowing to post-harvest stage
| Feature | Details |
|---|---|
| Launch Year | 2016 |
| Implemented By | Government of India |
| Beneficiaries | Loanee and non-loanee farmers |
| Risk Coverage | Natural calamities, pests, diseases |
Eligibility criteria for PMFBY
The scheme is open to:
- Land-owning farmers
- Sharecroppers and tenant farmers
- Farmers cultivating notified crops in notified areas
Both small and large farmers can enrol under PMFBY if they meet seasonal crop requirements and area notifications issued by the state government.
Mandatory and voluntary categories
Loanee farmers (those who take crop loans from banks) were earlier mandatorily covered, but enrolment is now voluntary for all farmers. Non-loanee farmers must opt in voluntarily before the notified deadline. Seasonal eligibility depends on Kharif and Rabi crop cycles. Aadhaar linking and an active bank account are essential to ensure direct benefit transfer of claim amounts.
Crops covered under PMFBY
The scheme covers a wide variety of crops depending on state government notifications.
Kharif crops
Common Kharif crops include rice, maize, pulses, cotton, and soybean.
Rabi crops
Rabi crops typically include wheat, barley, gram, and mustard.
Commercial and horticultural crops
Crops like sugarcane, cotton, potato, onion, and various fruits are covered under notified areas. Farmers must check their respective state notifications for the updated crop list.
Premium rates under Pradhan Mantri Fasal Bima Yojana
| Crop Type | Farmer Premium |
|---|---|
| Kharif Crops | 2% |
| Rabi Crops | 1.5% |
| Commercial & Horticulture | 5% |
PMFBY offers highly subsidised premium rates to ensure affordability. Regardless of the actual actuarial premium, farmers pay only the prescribed premium share, while the remaining amount is borne by the Central and State Governments.
Government subsidy component
The remaining premium amount is shared equally between the Central and State Governments. There is no upper limit on the government subsidy. For example, if the total premium rate for a crop is 12% and the farmer pays only 2%, the remaining 10% is shared between governments. This ensures affordable insurance coverage for farmers.
Risks and losses covered under PMFBY
-Prevented sowing
If farmers cannot sow crops due to adverse weather conditions like drought or floods, compensation is provided.
-Standing crop loss
Damage to crops due to drought, flood, cyclone, hailstorm, pests, or diseases during growth is covered.
-Localised calamities
Events like landslide, hailstorm, inundation, and cloudburst affecting specific farms are covered.
-Post harvest loss
Losses occurring within 14 days after harvesting due to cyclone or unseasonal rain are covered.
For instance, if a farmer’s rice crop is destroyed by a cyclone just before harvest, PMFBY compensates the insured loss amount directly to the bank account.
Coverage period under PMFBY
PMFBY provides coverage across different stages of cultivation.
Pre-sowing stage
Compensation is available if farmers cannot sow crops due to adverse weather conditions.
Crop growth stage
Coverage protects against losses caused by natural calamities, pests, and diseases.
Post-harvest stage
Losses occurring within 14 days after harvesting due to cyclones and unseasonal rainfall are covered.
What is not covered under PMFBY?
The scheme does not cover:
- Losses due to negligence or poor farming practices
- War and nuclear risks
- Theft or malicious damage
- Avoidable losses
Transparency regarding exclusions ensures realistic expectations among farmers.
How to apply for PMFBY?
Online application process
- Visit the official PMFBY portal
- Register using Aadhaar and mobile number
- Select crop and area details
- Upload necessary documents
- Pay the premium online
2. Offline application process
- Apply through bank branches
- Visit Common Service Centres (CSCs)
- Apply via agriculture department offices
PMFBY claim process
- Farmer reports crop loss through bank, CSC center, or PMFBY portal within the specified timeline.
- Intimation should include basic details like insured crop, area, and cause of loss.
- Local officials conduct initial field inspection to verify the reported damage.
- Crop Cutting Experiments (CCEs) or satellite data are used for yield assessment.
- Insurance company and state government jointly calculate actual loss.
- Claim amount is determined based on insured sum and yield shortfall.
- After approval, the insurance provider processes the payout.
- The final claim amount is directly credited to the farmer’s registered bank account.
- Farmers can track claim status online through the PMFBY portal.
How PMFBY claim amount is calculated?
The PMFBY claim amount is determined using the notified threshold yield, actual yield, and sum insured.
Example: If the threshold yield is 20 quintals per hectare and actual yield falls to 12 quintals per hectare due to drought, compensation is calculated based on the percentage reduction in yield and the insured amount.
Role of technology in PMFBY
Use of Satellite Imagery
Satellite monitoring helps assess crop conditions and detect large-scale damage.
Mobile Apps for Reporting
Farmers and officials can upload real-time loss data through mobile apps.
Digital Yield Assessment
Technology-driven CCE data collection reduces fraud and speeds up claims.
Benefits of Pradhan Mantri Fasal Bima Yojana
- Financial security: Protects against unexpected crop losses
- Risk mitigation: Reduces uncertainty in farming
- Encourages modern farming: Farmers invest confidently
- Reduces debt burden: Prevents dependence on informal loans
- Promotes agricultural growth: Stabilised income supports productivity
Timely claim settlement helps farmers prepare for the next sowing season without borrowing at high interest rates.
Challenges and criticisms of PMFBY
- Delays in claim settlement in some regions
- Awareness gaps among rural farmers
- Variations in state participation
- Need for faster technology integration
Despite improvements, continuous monitoring and reforms are required.
PMFBY vs Previous crop insurance schemes
| Feature | National Agricultural Insurance Scheme | Modified NAIS | PMFBY |
|---|---|---|---|
| Premium | Higher/Variable | Moderate | Low, fixed rates |
| Technology Use | Limited | Moderate | Extensive |
| Subsidy | Capped | Partially capped | No upper limit |
| Transparency | Moderate | Improved | High |
How farmers can check PMFBY application status?
- Visit the official Pradhan Mantri Fasal Bima Yojana (PMFBY) portal
- Click on the “Farmer Corner” section on the homepage
- Select the option “Application Status” or “Check Status”
- Enter required details such as application number, Aadhaar number, or registered mobile number
- Fill in captcha code for verification
- Click on “Search” or “Submit” to view status
- Check whether the application is approved, pending, or rejected
- Farmers can also track insurance claim status using the same portal
- Alternatively, visit the nearest Common Service Centre (CSC) for offline status check
- Contact insurance company helpline if application status shows delay
- Keep application receipt handy for quick reference
- Ensure mobile number is linked for SMS updates
PMFBY helpline number and grievance redressal
Farmers can contact the toll-free helpline number available on the official portal for assistance. Complaints can be registered online or through district agriculture offices. It is advisable to rely only on official sources for authentic information.
Conclusion
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crucial initiative that protects farmers from unpredictable agricultural risks. With low premiums, wide coverage, and digital claim processing, it strengthens financial stability in rural India. For millions of farmers dependent on agriculture, crop insurance under PMFBY provides a safety net that ensures continuity in farming operations even after severe crop losses. Strengthening awareness, timely claim settlement, and improved state participation will further enhance the scheme’s impact in securing India’s agricultural future.
