Pradhan Mantri Fasal Bima Yojana

1 min read
Pradhan Mantri Fasal Bima Yojana Blog Image


The latest data tabled in the Parliament by the Union Minister for Farmers’ Welfare shows that agriculture insurance premium has been going up while claims payment is down under the Pradhan Mantri Fasal Bima Yojana.

About Pradhan Mantri Fasal Bima Yojana:


  • It was launched in 2016 and replaced all the prevailing yield insurance schemes in India. 
  • This scheme is being administered by the Department of Agriculture, Cooperation and Farmers’ Welfare under the Ministry of Agriculture, along with empanelled general insurance companies.
  • Aim: To support production in agriculture by providing affordable crop insurance to ensure comprehensive risk cover for crops of farmers against all non-preventable natural risks.
  • The scheme provides coverage for the entire cropping cycle, from pre-sowing to post-harvest and midseason adversities.
  • Objectives:
    • Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events;
    • Stabilizing the income of farmers to ensure their continuance in farming;
    • Encouraging farmers to adopt innovative and modern agricultural practices;
    • Ensuring flow of credit to the agriculture sector, which will contribute to food security, crop diversification and enhancing growth and competitiveness of the agriculture sector besides protecting farmers from production risks;
  • Eligibility criteria:
    • The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops.
    • The Scheme would be optional for non-loanee farmers.
  • Insurance Coverage:
    • Under this scheme, the insurance cover is limited to specific crops and agricultural risks related to crop yield.
    • The list of notified crops includes food crops (i.e., cereals, millets, and pulses), oilseeds, annual commercial crops, and annual horticultural crops.
  • General Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
  • Premiums:
    • There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.
    • In the case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
    • 95-98.5% actuarial premium is fulfilled by the state and central governments and shared on a 1:1 ratio.


Q1) What are Rabi and Kharif crops?

Rabi and Kharif are two agricultural seasons in India. Rabi crops are sown in the winter (October to March) and harvested in the spring (April to June). Kharif crops are sown in the summer (June to October) and harvested in the fall (November to December).Rabi crops are typically grown in areas with cool winters and dry summers. Some common Rabi crops include wheat, barley, mustard, peas, and potatoes. Kharif crops are typically grown in areas with hot summers and wet monsoons. Some common Kharif crops include rice, maize, millet, sorghum, and cotton.

Source: Farm insurance premium up, but claim settlements on steep decline