{"id":31088,"date":"2026-10-22T11:48:10","date_gmt":"2026-10-22T06:18:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/upsc-exam\/?p=31088"},"modified":"2026-10-22T11:48:10","modified_gmt":"2026-10-22T06:18:10","slug":"pmfby","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/upsc-exam\/pmfby\/","title":{"rendered":"Pradhan Mantri Fasal Bima Yojana (PMFBY), Objectives, Impact"},"content":{"rendered":"<p><span style=\"font-weight: 400\">The Pradhan Mantri Fasal Bima Yojana, or PMFBY, was launched in 2016 by the Government of India to protect farmers against financial losses caused by specified crop failures. Administered by the Ministry of Agriculture and Farmers Welfare, the scheme provides subsidised crop insurance for notified food crops, oilseeds and eligible commercial and horticultural crops.<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">PMFBY covers specified risks arising from natural calamities, pests and diseases, including eligible losses during sowing, crop growth and the post-harvest period. By offering affordable premiums and technology-based crop-loss assessment, PMFBY aims to stabilise farm incomes, support agricultural credit and strengthen farmers\u2019 resilience. However, timely claim settlement, accurate loss assessment and greater farmer awareness remain essential for improving its effectiveness.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400\">PMFBY Overview<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Pradhan Mantri Fasal Bima Yojana, or PMFBY, combines affordable farmer contributions with government premium subsidies and a structured system for assessing crop losses in notified areas.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Launch: <\/b><span style=\"font-weight: 400\">2016.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Nodal ministry<\/b><span style=\"font-weight: 400\">: Ministry of Agriculture and Farmers Welfare, Government of India.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Nature<\/b><span style=\"font-weight: 400\">: Central Sector Scheme providing subsidised crop insurance.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Coverage<\/b><span style=\"font-weight: 400\">: Notified food crops, oilseeds and eligible annual commercial or horticultural crops, depending on state and season notifications.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Implementation<\/b><span style=\"font-weight: 400\">: Selected insurance companies work with state governments and other designated agencies.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Insurance assessment: <\/b><span style=\"font-weight: 400\">Widespread yield losses are generally assessed using an area-based approach, supported by Crop Cutting Experiments (CCEs) and, where applicable, technology-based yield estimation.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Claim payment:<\/b><span style=\"font-weight: 400\"> Eligible claims are transferred to farmers through the prescribed payment process, generally into their bank accounts.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Need<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">Crop insurance is important in India because agricultural production is exposed to weather fluctuations, biological threats and other risks that can reduce yields and weaken farmers\u2019 financial stability.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Dependence on the monsoon<\/b><span style=\"font-weight: 400\">: Irregular rainfall, droughts and dry spells can affect sowing, crop growth and final yields.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Increasing climate-related uncertainty<\/b><span style=\"font-weight: 400\">: Floods, cyclones, hailstorms and unseasonal rainfall can damage crops and increase the unpredictability of farm incomes.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Pest and disease outbreaks:<\/b><span style=\"font-weight: 400\"> Crop infestations and plant diseases can cause substantial losses even when farmers follow normal cultivation practices.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>High cultivation costs:<\/b><span style=\"font-weight: 400\"> Farmers invest in seeds, fertilisers, labour, irrigation and machinery before knowing the final harvest outcome.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Income instability<\/b><span style=\"font-weight: 400\">: A poor harvest may reduce household earnings and make it difficult to repay agricultural loans or finance the next cropping season.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Limited capacity to absorb losses<\/b><span style=\"font-weight: 400\">: Small and marginal farmers may have fewer savings and less access to alternative sources of income after crop failure.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Need to sustain agricultural credit: <\/b><span style=\"font-weight: 400\">Crop insurance can help reduce production-related risks and support continuity in agricultural lending.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Food and livelihood security:<\/b><span style=\"font-weight: 400\"> Reducing the financial impact of crop losses can help protect farm households and support a more stable food supply.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Objectives<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY seeks to reduce the financial consequences of crop failure while supporting continuity and resilience in agricultural production.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Provide financial protection:<\/b><span style=\"font-weight: 400\"> Compensate insured farmers for eligible crop losses caused by specified unforeseen events.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Stabilise farm income<\/b><span style=\"font-weight: 400\">: Reduce the severity of income shocks following crop damage.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Support continuity in farming: <\/b><span style=\"font-weight: 400\">Help farmers manage financial losses and prepare for subsequent cropping seasons.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Encourage modern agriculture:<\/b><span style=\"font-weight: 400\"> Reduce some production-related financial risks associated with adopting improved farming practices.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Strengthen agricultural credit:<\/b><span style=\"font-weight: 400\"> Help sustain the flow of institutional credit to agriculture by reducing exposure to crop-production risks.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Improve risk management:<\/b><span style=\"font-weight: 400\"> Build a structured insurance mechanism for agricultural losses linked to natural hazards, pests and diseases.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Features<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY combines subsidised premiums, defined insurance coverage and technology-assisted loss assessment to make crop insurance more accessible to farmers.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Affordable Premium Rates:<\/b><span style=\"font-weight: 400\"> The farmer\u2019s maximum premium contribution for notified crops is generally capped as follows:<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Kharif food crops and oilseeds:<\/b><span style=\"font-weight: 400\"> 2% of the sum insured, or the actuarial premium rate, whichever is lower.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Rabi food crops and oilseeds<\/b><span style=\"font-weight: 400\">: 1.5% of the sum insured, or the actuarial premium rate, whichever is lower.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Annual commercial and horticultural crops:<\/b><span style=\"font-weight: 400\"> 5% of the sum insured, or the actuarial premium rate, whichever is lower.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The remaining admissible premium is subsidised by the government according to the applicable cost-sharing rules.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Voluntary Enrolment<\/b><span style=\"font-weight: 400\">: Farmers can choose whether to participate. From Kharif 2020, enrolment became voluntary even for farmers with crop loans, while non-loanee farmers can also enrol voluntarily.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Coverage Across Crop Stages<\/b><span style=\"font-weight: 400\">: Subject to the scheme\u2019s conditions, insurance may cover prevented sowing, losses to standing crops, specified localised calamities and eligible post-harvest damage.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Area-Based Yield Assessment<\/b><span style=\"font-weight: 400\">: For widespread crop losses, claims are generally calculated using yield shortfalls in the notified insurance unit, with the applicable threshold yield and reported actual yield forming part of the assessment.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Individual-farm assessment applies to specified localised and post-harvest losses.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Technology in Crop Insurance<\/b><span style=\"font-weight: 400\">: The scheme increasingly uses digital platforms, mobile applications, remote sensing and technology-based yield estimation to improve data collection, monitoring and claim processing.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">These include the National Crop Insurance Portal, CCE-Agri App, YES-TECH and the Crop Loss Assessment Platform (CLAP).<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Government Support for Premiums:<\/b><span style=\"font-weight: 400\"> Government premium subsidies reduce the amount paid directly by insured farmers.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The applicable subsidy-sharing arrangement depends on the scheme rules and the state or Union Territory concerned.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Standard States and Union Territories:<\/b><span style=\"font-weight: 400\"> 50:50 split between the Central Government and the State\/UT Government.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>North-Eastern States (NER):<\/b><span style=\"font-weight: 400\"> 90:10 split between the Central Government and the State Government (revised starting from Kharif 2020).<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Claim and Grievance Support:<\/b><span style=\"font-weight: 400\"> Farmers can use the official PMFBY portal to access enrolment and claim-related information. The portal also lists the Krishi Rakshak Portal and Helpline (14447) for reporting crop losses and grievances.<\/span><\/li>\r\n<\/ul>\r\n<p><img decoding=\"async\" class=\"wp-image-31091 aligncenter\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20151935\/PMFBY-2.png\" alt=\"PMFBY\" width=\"867\" height=\"521\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20151935\/PMFBY-2.png 1617w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20151935\/PMFBY-2-768x462.png 768w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20151935\/PMFBY-2-1536x924.png 1536w\" sizes=\"(max-width: 867px) 100vw, 867px\" \/><\/p>\r\n<h2><span style=\"font-weight: 400\">PMFBY Benefits<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY can help farmers manage agricultural uncertainty by transferring specified production risks to an insurance mechanism.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Financial protection<\/b><span style=\"font-weight: 400\">: Eligible insurance claims help offset losses caused by covered events.\u00a0<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Premium caps make participation more accessible than paying the full actuarial premium.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Compensation can reduce the financial shock associated with a poor harvest.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Support for future cultivation<\/b><span style=\"font-weight: 400\">: Claim payments may help insured farmers meet some of the costs of the next crop cycle.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Credit continuity<\/b><span style=\"font-weight: 400\">: Crop insurance can complement institutional agricultural lending by addressing certain production risks.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Support for vulnerable farmers<\/b><span style=\"font-weight: 400\">: Small and marginal farmers may benefit from reduced exposure to severe crop-loss shocks.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Improved agricultural risk management:<\/b><span style=\"font-weight: 400\"> Insurance encourages a more systematic approach to managing weather and production uncertainty.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Digital access<\/b><span style=\"font-weight: 400\">: Online enrolment, tracking and grievance channels can improve access to scheme-related information.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Broader agricultural resilience:<\/b><span style=\"font-weight: 400\"> By cushioning eligible losses, the scheme can contribute to the stability of farming households and agricultural production.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Support <\/b><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/food-security-in-india\/\" target=\"_blank\"><b>food security in India<\/b><\/a><span style=\"font-weight: 400\">: Help protect agricultural production and the livelihoods of farming households.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Risks Coverage<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY provides coverage for specified risks at different stages of crop production. The precise protection depends on the notified crop, area, season and applicable scheme guidelines.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Prevented Sowing or Planting:<\/b><span style=\"font-weight: 400\"> When adverse weather prevents the majority of insured farmers in a notified area from sowing or planting the insured crop despite having intended to do so and having incurred eligible expenditure, compensation may be available under the scheme\u2019s conditions.\u00a0<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The applicable guidelines provide for a maximum payout of up to 25% of the sum insured for this category.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Standing Crop Losses<\/b><span style=\"font-weight: 400\">: Eligible yield losses arising from specified non-preventable risks may be covered, including:<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Drought and dry spells.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Floods and inundation.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Hailstorms and storms.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Cyclones and related severe weather events.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/landslides\/\" target=\"_blank\">Landslides<\/a><\/strong><span style=\"font-weight: 400\">.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Natural fire and lightning.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Pest attacks and crop diseases.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Widespread losses are generally assessed using the scheme\u2019s area-based yield methodology.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Localised Calamities:<\/b><span style=\"font-weight: 400\"> Specified events that damage an individual insured farm may qualify for individual assessment.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">These can include notified instances of hailstorm, landslide, inundation, cloudburst or natural fire due to lightning, subject to the applicable operational guidelines and state notification.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Post-Harvest Losses: <\/b><span style=\"font-weight: 400\">Coverage may be available for specified damage after harvesting when the crop is left in the field in the prescribed cut-and-spread condition for drying.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The scheme provides protection for eligible events such as cyclonic or unseasonal rainfall, subject to the applicable rules and reporting requirements.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The relevant coverage period is generally up to 14 days after harvest under the guidelines.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Eligibility<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY is available to farmers cultivating eligible notified crops in areas where the scheme has been implemented for the relevant season. Eligible categories generally include:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Owner-cultivators:<\/b><span style=\"font-weight: 400\"> Farmers with an insurable interest in the notified crop and land.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Tenant farmers and sharecroppers:<\/b><span style=\"font-weight: 400\"> Where permitted, provided they meet the prescribed eligibility and documentation requirements.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Loanee farmers<\/b><span style=\"font-weight: 400\">: Farmers who have agricultural crop loans may voluntarily opt into the scheme under the current framework.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Non-loanee farmers:<\/b><span style=\"font-weight: 400\"> Farmers who are not taking crop loans may also apply voluntarily.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400\">General Conditions for Enrolment<\/span><\/h3>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Cultivate a crop notified for insurance in the relevant area and season.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Have an eligible insurable interest in the crop.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Provide the required land, cultivation, identity and bank-account details.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Complete enrolment and premium payment within the prescribed deadline.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Follow the applicable procedure for reporting crop losses and submitting supporting information.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The list of notified crops, insurance units, enrolment deadlines and documentary requirements should be checked through the official portal or the relevant state notification for the particular season.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Crop Coverage<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The scheme covers eligible crops notified by state and Union Territory governments, with coverage determined by the crop, insurance unit and season. The principal crop categories are:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Food crops<\/b><span style=\"font-weight: 400\">: Cereals, millets and pulses, where notified.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Oilseeds<\/b><span style=\"font-weight: 400\">: Eligible oilseed crops included in the seasonal notification.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Annual commercial crops<\/b><span style=\"font-weight: 400\">: Specified commercial crops for which the required historical yield data and crop-cutting arrangements are available.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Annual horticultural crops:<\/b><span style=\"font-weight: 400\"> Eligible horticultural crops notified under PMFBY.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY Exclusions<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY does not cover every type of agricultural loss. Its exclusions help define the limits of the insurance protection. The general exclusions under the operational guidelines include:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>War and related risks<\/b><span style=\"font-weight: 400\">: Losses arising from war and associated hostilities are excluded.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Nuclear risks:<\/b><span style=\"font-weight: 400\"> Damage arising from nuclear-related hazards is excluded.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Riots and malicious damage<\/b><span style=\"font-weight: 400\">: Losses caused by specified intentional or malicious acts are generally outside the coverage.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Theft:<\/b><span style=\"font-weight: 400\"> Theft-related losses are excluded.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Damage by animals:<\/b><span style=\"font-weight: 400\"> Crops grazed or destroyed by domestic or wild animals are generally excluded under the cited guidelines.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Preventable risks<\/b><span style=\"font-weight: 400\">: Losses arising from other preventable causes are excluded.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Ineligible post-harvest conditions<\/b><span style=\"font-weight: 400\">: Under the cited guidelines, post-harvest losses are not covered when the harvested crop has already been bundled and heaped at a place before threshing.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY and Impact on Indian Agriculture<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">PMFBY has expanded India's crop-insurance framework and provided financial protection against specified production risks. Its impact can be assessed through the following indicators:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Expansion of Insurance Participation:<\/b><span style=\"font-weight: 400\"> Farmer enrolment increased from 3.17 crore in 2022\u201323 to 4.19 crore in 2024\u201325, a rise of 32%. In 2024\u201325, over 15.23 crore farmer applications were insured, covering more than 623 lakh hectares.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Financial Risk Protection:<\/b><span style=\"font-weight: 400\"> By August 2026, cumulative claims under PMFBY had exceeded \u20b92.06 lakh crore, benefiting more than 26.33 crore farmer applications since inception.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">This demonstrates the scheme's role in compensating eligible farmers for covered crop losses.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Support for Agricultural Continuity:<\/b><span style=\"font-weight: 400\"> Compensation can help insured farmers manage production shocks, repay agricultural loans and finance the next sowing season. However, the extent of relief depends on eligibility, assessed losses and claim settlement.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Wider Crop and Risk Coverage:<\/b><span style=\"font-weight: 400\"> The scheme covers specified risks at different stages of cultivation, including prevented sowing, standing-crop losses, localised calamities and certain post-harvest losses, subject to notified conditions.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Greater Use of Technology:<\/b><span style=\"font-weight: 400\"> YES-TECH, DigiClaim and digital crop-loss assessment tools aim to improve yield estimation, transparency and claim processing. The Krishi Rakshak Portal and Helpline (14447) had resolved 26.12 lakh grievances, with a reported resolution rate of 99.66%, by August 2026.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Continuing Gaps in Coverage:<\/b><span style=\"font-weight: 400\"> Historical official data show that the Kharif insured area under the combined PMFBY\u2013RWBCIS framework declined from 318.01 lakh hectares in 2018 to 278.12 lakh hectares in 2026.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">This highlights the importance of tracking insured area and the share of cropped land covered, rather than relying on enrolment figures alone.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<p><img decoding=\"async\" class=\"wp-image-31090 aligncenter\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20150430\/PMFBY-1.png\" alt=\"PMFBY\" width=\"825\" height=\"461\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20150430\/PMFBY-1.png 1677w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20150430\/PMFBY-1-768x430.png 768w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20150430\/PMFBY-1-1536x859.png 1536w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20150430\/PMFBY-1-270x152.png 270w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/10\/20150430\/PMFBY-1-410x230.png 410w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\r\n<h2><span style=\"font-weight: 400\">PMFBY Way Forward<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">Improving PMFBY requires a combination of better administration, reliable data, farmer awareness and technology that makes insurance more responsive to actual agricultural risks.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Ensure Timely Release of Subsidies:<\/b><span style=\"font-weight: 400\"> Central and state authorities should follow the prescribed funding schedules and strengthen monitoring of premium-subsidy payments. This can help reduce avoidable delays in processing eligible claims.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Improve Crop-Loss Assessment<\/b><span style=\"font-weight: 400\">: Greater use of remote sensing, satellite imagery, digital field records and technology-assisted yield estimation can complement conventional crop-cutting experiments. Such systems should be validated and supported by transparent assessment standards.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Strengthen Farmer Awareness<\/b><span style=\"font-weight: 400\">: Agricultural extension workers, banks, Common Service Centres and local institutions should explain premium rates, notified crops, coverage limits, enrolment deadlines and claim-reporting procedures in local languages.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Make Claim Procedures More Transparent<\/b><span style=\"font-weight: 400\">: Farmers should be able to track enrolment and claim status, understand why a claim has been approved or rejected, and access an effective grievance-redressal mechanism.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Improve Localised Damage Assessment<\/b><span style=\"font-weight: 400\">: Individual-farm assessment should be carried out promptly for eligible localised calamities and post-harvest losses. Digital tools such as the Crop Loss Assessment Platform can support more systematic reporting and documentation.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Strengthen Data Quality<\/b><span style=\"font-weight: 400\">: Accurate land records, correct farmer details, timely premium remittance and reliable crop-yield data are essential. Integrating relevant databases can help reduce errors and disputes.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Tailor Coverage to Regional Risks<\/b><span style=\"font-weight: 400\">: State governments should use local cropping patterns, climatic conditions and loss histories to determine appropriate notified crops and additional risk covers under the scheme's rules.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Evaluate Outcomes Beyond Enrolment<\/b><span style=\"font-weight: 400\">: Performance reviews should examine the number and profile of farmers insured, area covered, claims paid, time taken for settlement, grievance resolution and farmer satisfaction.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">This would provide a more complete assessment of whether the scheme is reaching its intended beneficiaries.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Strengthen Accountability:<\/b><span style=\"font-weight: 400\"> Clear responsibility for delays, transparent claim calculations and effective monitoring of insurers and implementing authorities can improve accountability and reinforce farmer confidence.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">PMFBY UPSC PYQs<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\"><strong>Q1.<\/strong> Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY)<\/span><span style=\"font-weight: 400\">. <\/span><b>(UPSC Mains 2016)<\/b><\/p>\r\n<p><span style=\"font-weight: 400\"><strong>Q2.<\/strong> With reference to \u2018Pradhan Mantri Fasal Bima Yojana\u2019, consider the following statements <\/span><b>(UPSC Prelims 2016)<\/b><\/p>\r\n<ol>\r\n\t<li><span style=\"font-weight: 400\"> Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate for any reason of the year.\u00a0<\/span><\/li>\r\n\t<li><span style=\"font-weight: 400\"> This scheme covers post harvest losses arising out of cyclones and unseasonal rains.<\/span><\/li>\r\n<\/ol>\r\n<p><span style=\"font-weight: 400\">Which of the statements given above is\/are correct?<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(a) 1 only<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(b) 2 only<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(c) Both 1 and 2<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(d) Neither 1 nor 2<\/span><\/p>\r\n<p><strong>Ans: (b)<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>PMFBY was launched in 2016 by the Government of India to protect farmers against financial losses caused by specified crop failures. Know its objectives, features, crop coverage and impact.<\/p>\n","protected":false},"author":35,"featured_media":31151,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[38,32],"tags":[2128,40,648],"class_list":["post-31088","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-notes","category-upsc-agriculture-notes","tag-pmfby","tag-quest","tag-upsc-agriculture-notes"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/31088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/comments?post=31088"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/31088\/revisions"}],"predecessor-version":[{"id":31133,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/31088\/revisions\/31133"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/media\/31151"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/media?parent=31088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/categories?post=31088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/tags?post=31088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}