The Union Cabinet has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) until 2025-26, allocating ₹69,515 crore.
Pradhan Mantri Fasal Bima Yojana:
- Launched in: 2016 by the Ministry of Agriculture & Farmers Welfare.
Objective:
- Provide crop insurance against losses caused by natural disasters.
- Stabilize farmers’ income and support continuous farming.
- Encourage modern agricultural practices and boost credit flow to the agriculture sector.
Premium Rates:
- Kharif Crops: 2% of the insured amount.
- Rabi Crops: 1.5% of the insured amount.
- Commercial/Horticultural Crops: 5% of the insured amount.
- The remaining premium is equally subsidized by the Central and State Governments.
Coverage Approach:
- Follows an area-based model for major crops, with the village/village panchayat as the unit of insurance.
Beneficiaries:
- All farmers cultivating notified crops and holding insurable interest.
- Voluntary enrollment introduced from the Kharif season of 2020.
Risks Covered:
- Yield Losses: Due to hailstorms, cyclones, droughts, floods, and pest attacks.
- Prevented Sowing: Compensation up to 25% of the insured sum for adverse weather.
- Post-Harvest Losses: Coverage for up to 14 days after harvest for crop drying.
- Localized Risks: Includes hailstorms, landslides, and inundation affecting specific farms.
Key Features:
- Use of Technology: Satellite imagery, drones, remote sensing, and AI for accurate yield assessments.
- YES-TECH Initiative: Technology-driven yield estimation to minimize reliance on crop-cutting experiments.
- No Subsidy Cap: The government provides unlimited subsidies on premiums.
- Ease of Reporting: Farmers can report losses within 72 hours via the Crop Insurance App.
Pradhan Mantri Fasal Bima Yojana (PMFBY) is the government sponsored crop insurance scheme that integrates multiple stakeholders on a single platform
