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 Pradhan Mantri Fasal Bima Yojana (PMFBY) has achieved 78.41 crore applications being insured and Rs 1.83 lakh crore claims being paid since its launch in 2016, according to the latest government data. Farmer enrollment rose by 32 per cent from 3.17 crore (2022–23) to 4.19 crore (2024–25) -- the highest since launch.

Non-loanee farmer applications grew from 20 lakh (2014–15) to 522 lakh (2024–25), reflecting wider adoption, according to the data.

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 like 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.

As compared to erstwhile crop insurance schemes, coverage of farmer applications has increased from 371 lakh in 2014-15 to 1,510 lakh in 2024-25.

Witnessing the success and potential of the scheme, the Union Cabinet in January 2025 approved the continuation of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with a total budget of Rs 69,515.71 crore.

Moreover, PMFBY is now the largest crop insurance scheme in the world in terms of farmer applications. In addition, several States have waived the farmer's share of the premium, significantly reducing the financial burden on farmers and encouraging wider participation in the scheme.

Under the scheme, the maximum premium payable by the farmer will be 2 per cent for the Kharif food and oilseed crops. For rabi food and oilseeds crop, it is 1.5 per cent and for yearly commercial or horticultural crops, it will be 5 per cent.

The remaining part (95 per cent to 98.5 per cent) of the actuarial premium is borne jointly by the Central and state governments on 50:50 basis, except for North Eastern States (from Kharif 2020) and Himalayan States (from Kharif 2023) where it is shared in the ratio of 90:10.

Source - https://www.zeebiz.com