Pradhan Mantri Fasal Bima Yojana

• 06 May 2025

Source: BL 

Why in News? 

According to the Ministry of Agriculture and Farmers Welfare, 97% of all reported claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) have been settled across India. 

• Goa, Chhattisgarh, Telangana, and Tamil Nadu have achieved full claim settlement, while Tripura, Andaman and Nicobar Islands, Andhra Pradesh, and Sikkim have settlement rates from 91% to 51%.

What is Pradhan Mantri Fasal Bima Yojana? 

• About: Launched in 2016, PMFBY is a Central Sector Scheme designed to offer financial protection to farmers against crop losses caused by natural disasters, pests, or diseases. 
  • As of 2023–24, PMFBY became the world’s largest crop insurance scheme in terms of the number of farmers enrolled and land area covered. 
• Key Features: 
  • Eligibility: All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.  
    • Participation in PMFBY is voluntary, with non-loanee farmers comprising 55% of total beneficiaries. 
  • Risk Coverage: 
    • Natural Disasters: Includes floods, droughts, cyclones, hailstorms, landslides, and unseasonal rainfall. 
    • Pest & Disease Coverage: Protects against pest attacks and crop diseases. 
    • Post-Harvest Losses (Individual Farm Basis)  : Compensation for damage within 14 days of harvest, especially for crops kept in "cut and spread" condition. 
    • Localised Calamities: The government provides compensation for localised calamities on an individual farm basis. 
    • Prevented Sowing (on Notified Area Basis): If most insured farmers in a notified area are unable to sow due to adverse weather despite intent and incurred costs, they can claim up to 25% of the sum insured as indemnity. 
  • Premium Rates: Farmers pay affordable premiums—2% for Kharif crops, 1.5% for Rabi crops, and 5% for annual commercial or horticultural crops. 
    • The government fully subsidizes premiums for farmers in the Northeast, Jammu & Kashmir, and Himachal Pradesh. 
  • Technological Integration:  
    • Satellite Imagery & Drones: Used for estimating crop area, resolving yield disputes, and assessing crop losses. 
    • Crop Cutting Experiments (CCEs): The CCE-Agri App enables direct data upload to the National Crop Insurance Portal (NCIP), ensuring transparent yield assessment. 
    • It also utilizes DigiClaim, Collection of Real Time Observations and Photographs of Crops (CROPIC), and Weather Information Network Data Systems (WINDS). 
  • Payouts: PMFBY aims to process claims within two months of harvest, offering timely financial support to prevent farmers from falling into debt traps.

Restructured Weather-Based Crop Insurance Scheme   

• It was launched in 2016 to safeguard farmers against financial losses due to unfavorable weather conditions. 
• RWBCIS offers compensation based on deviations from predefined weather indicators—like rainfall, temperature, humidity, and wind speed—serving as proxies for crop loss without field-level evaluations 
  • Whereas, PMFBY provides compensation based on actual crop loss assessments caused by natural calamities, pests, or diseases 

UPSC Civil Services Examination Previous Year Question (PYQ)  

Prelims  

Q. With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: (2016) 

1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year. 
2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. 

Which of the statements given above is/are correct? 

(a) 1 only  

(b) 2 only  

(c) Both 1 and 2  

(d) Neither 1 nor 2  

Ans: (b)