Pradhan Mantri Fasal Bima Yojana (PMFBY) – A Complete Guide for Farmers

Agriculture is the backbone of India’s economy, but farming often comes with high risks due to uncertain weather, natural calamities, and crop failure. To safeguard the income of farmers and provide them financial security, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) on 13th January 2016.

This flagship crop insurance scheme aims to provide affordable insurance and ensure farmers’ economic stability during times of crop loss.

Key Objectives of PMFBY

  1. Financial Support – To provide insurance coverage and financial assistance to farmers in case of crop loss due to natural disasters, pests, or diseases.

  2. Risk Mitigation – To encourage farmers to adopt modern agricultural practices without the fear of financial loss.

  3. Stability in Income – To stabilize farmers’ income and support their livelihood.

  4. Credit Support – To ensure that farmers can repay their agricultural loans even in adverse situations.

Coverage under PMFBY

The scheme covers losses caused by:

  • Natural calamities – Drought, flood, cyclone, storm, hailstorm, landslide, etc.

  • Pest attacks and diseases – Major crop diseases or insect infestations.

  • Prevented sowing and post-harvest losses – Coverage in case sowing is not possible due to extreme weather and damage caused after harvest (like cyclones or rains).

Premium Rates for Farmers

Farmers have to pay only a small percentage of the total premium, while the rest is subsidized by the government.

  • Kharif Crops: 2% of sum insured

  • Rabi Crops: 1.5% of sum insured

  • Annual Commercial & Horticultural Crops: 5% of sum insured

The balance premium is borne by the central and state governments, making insurance affordable for farmers.

Eligibility for PMFBY

  • All farmers growing notified crops in notified areas are eligible.

  • Both loanee farmers (those who take agricultural loans) and non-loanee farmers can apply.

  • Farmers must have insurable interest in the crop (ownership/lease/sharecropping basis).

Benefits of PMFBY

  • Low premium rates for farmers.

  • Wide coverage for crops and risks.

  • Use of modern technology like drones, remote sensing, and mobile apps for quick claim settlement.

  • Direct transfer of claims into farmers’ bank accounts (DBT – Direct Benefit Transfer).

  • Helps farmers to recover quickly after natural disasters.

How to Apply for PMFBY

Farmers can enroll through:

  1. Banks (Nationalized/Private/Cooperative Banks) – especially for loanee farmers.

  2. Insurance Companies empaneled under PMFBY.

  3. Online Portal – https://pmfby.gov.in

  4. Common Service Centres (CSCs) in villages.

Required documents: Aadhaar card, bank account details, land ownership proof/lease agreement, and crop details.

Challenges in PMFBY

  • Delay in claim settlement in some states.

  • Lack of awareness among small and marginal farmers.

  • Dependency on technology and accurate data collection.

The government is continuously working to improve efficiency and transparency in the scheme.

Conclusion

The Pradhan Mantri Fasal Bima Yojana is a crucial step towards protecting farmers against the uncertainties of agriculture. By paying a nominal premium, farmers can secure their crops and livelihood from unexpected disasters. For India, where more than 50% of the population depends on farming, PMFBY not only safeguards the farmers but also strengthens the overall agricultural economy.

👉 If you are a farmer or know someone engaged in agriculture, spreading awareness about PMFBY can help them protect their hard-earned crops and secure their financial future.

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