Farmers all across India are benefiting from the Pradhan Mantri Fasal Bima Yojana (PMFBY). PMFBY is not insurance; it acts as a safety net for them when the forces of nature don’t support the farmers’ efforts.
Every season, droughts, floods, pests, or storms destroy months of effort in just a few hours.
That’s exactly what happened to Shri Lal Krishnesh, a farmer from Kerala. In 2022, heavy rains ruined his entire crop, leaving him heartbroken. But he had made a smart decision; he chose to secure his farm by investing ₹20,000 in the Pradhan Mantri Fasal Bima Yojana (PMFBY).
“PMFBY paid me 9 times my premium,” he says. This helped him recover and continue farming. In 2023, the weather played spoilsport again. His banana and areca nut crops were damaged. But once again, PMFBY came to his rescue. He received 6.6 times his premium. “The scheme gave me the courage to stand up again,” he says.
Launched on February 18, 2016, PMFBY aims to provide farmers with a simple, affordable, and comprehensive crop insurance solution. The scheme protects farmers from crop losses caused by non-preventable natural risks such as droughts, floods, cyclones, hailstorms, pest attacks, and plant diseases.
PMFBY covers the entire crop cycle, from pre-sowing to post-harvest, including damage during storage if caused by a notified calamity. It offers timely financial support, helping farmers manage risks and avoid falling into debt.
The scheme ensures uniformity and fairness in premium rates across India. By reducing the financial risks of farming, PMFBY encourages farmers to invest in better seeds, improved technology, and sustainable farming practices, helping them build a more secure future.
Achievements under the scheme
With a surge of 32%, the total number of farmers enrolled in the scheme has increased from 3.17 crore in 2022-23 to 4.19 crore in 2024-25.
Since inception in 2016 till June 2024-25, a total of 78.407 crore farmer applications have been insured under PMFBY.
In January 2025, the government allotted a budget of ₹69,515.71 crore for the continuation of the PMFBY and Restructured Weather-Based Crop Insurance Scheme.
What are the risks covered under the scheme?
Yield Losses (Standing Crops): An insurance coverage is provided for yield losses that fall under the non-preventable risks, such as natural fire, storms, floods, droughts, etc.
Prevented Sowing: It is a situation where farmers are unable to plant their crops due to unfavourable weather conditions, even though they intended to and incurred expenses for sowing. The farmers are provided with indemnity claims of up to a maximum of 25% of the sum insured.
Post-harvest Losses: The Government provides for post-harvest losses on an individual farm basis. The Government offers coverage of up to 14 days (maximum) from harvesting for crops that are stored in “cut and spread” condition.
Localised Calamities: Claims for localised calamities are provided on an individual farm basis. Risks such as loss or damage arising from identified localised hazards, such as hailstorms, landslides, and inundation impacting separated farmlands in the notified area, come under this coverage.
What are some key initiatives to strengthen PMFBY implementation?
Several steps have been taken to improve the PMFBY scheme. These focus on better implementation, faster claim settlement, and increased awareness among farmers:
A National Crop Insurance Portal (NCIP) has been created. It enables online farmer enrolment, data sharing, monitoring, and direct transfer of claim amounts to farmers’ bank accounts.
A dedicated Digi claim Module has been operationalised from Kharif 2022 onwards. It links NCIP with the Public Finance Management System (PFMS) and insurance company systems.
Technology is being used more effectively. Crop yield data is collected using the CCE-Agri mobile app, uploaded to NCIP, and insurance companies can now attend Crop Cutting Experiments (CCEs). State land records are also being linked to NCIP.
Awareness drives have been undertaken by States, insurance companies, banks and Common Service Centres (CSCs) to inform farmers and Panchayati Raj Institutions (PRIs) about the scheme.
To help farmers with queries and complaints under PMFBY, a toll-free number 14447 has been launched.
How is tech being integrated to assist farmers?
YES-TECH (Yield Estimation System Based on Technology):
YES-TECH has been introduced to enable gradual migration towards remote sensing-based crop yield estimation. It aims to ensure fair and accurate assessment of crop yields. The initiative was launched for paddy and wheat crops in 2023.
WINDS (Weather Information Network and Data System):
WINDS has been developed to establish an expanded network of Automatic Weather Stations (AWS) and Automatic Rain Gauges (ARG), increasing the current network fivefold. These installations will collect hyper-local weather data at Gram Panchayat and Block levels. The data will be integrated into a national database with interoperability and sharing ensured in coordination with the India Meteorological Department (IMD). WINDS supports not only YES-TECH but also plays a vital role in drought and disaster management, accurate weather forecasting and the development of improved parametric insurance products.
By adopting advanced technologies such as satellite imagery, drones, mobile data capture and weather monitoring, PMFBY has improved transparency, accuracy and efficiency in crop loss assessment.
As PMFBY enters its next phase, it remains focused on protecting farmers from agricultural uncertainties and promoting sustainable farming practices.