PMFBY (Pradhan Mantri Fasal Bima Yojana) – Complete Crop Insurance Guide for Indian Farmers (2025)
📌 Introduction
Indian agriculture is highly dependent on monsoon rains and climatic stability. Floods, droughts, cyclones, unseasonal rainfall, pests, and diseases frequently cause severe crop losses, pushing farmers into financial distress. To protect farmers from such unavoidable risks, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.
PMFBY is India’s flagship crop insurance scheme, designed to provide financial protection against crop failure while ensuring affordable premiums and faster claim settlements.
🎯 Objective of PMFBY
The core objectives of PMFBY are to:
- Safeguard farmers against crop losses due to natural calamities
- Stabilize farm income
- Encourage farmers to adopt modern agricultural practices
- Ensure credit flow to agriculture by reducing risk
- Promote financial resilience among farming communities
🌾 What is PMFBY?
PMFBY is a government-backed crop insurance scheme where farmers pay a very low premium, and the remaining insurance cost is subsidized by the Central and State Governments.
The scheme covers:
- Pre-sowing to post-harvest losses
- Weather-related and biological risks
- Yield-based and localized calamities
💰 PMFBY Premium Rates (Farmer Contribution)
One of the strongest features of PMFBY is its low premium structure:
✅ Premium Rates
- 🌱 Kharif Crops: 2% of Sum Insured
- 🌾 Rabi Crops: 1.5% of Sum Insured
- 🌸 Commercial / Horticultural Crops: 5% of Sum Insured
👉 Any premium amount above this is fully borne by the government.
🛡️ Risks Covered Under PMFBY
PMFBY offers comprehensive coverage across the crop cycle:
🌧️ 1. Yield Loss (Standing Crop)
Covers losses due to:
- Drought
- Flood
- Cyclone
- Hailstorm
- Pest & disease attack
🌱 2. Prevented Sowing / Planting
- If farmers are unable to sow due to adverse weather
- Compensation is provided for input costs
🌾 3. Post-Harvest Losses
- Coverage up to 14 days after harvesting
- Protects crops kept in the field against:
- Cyclone
- Unseasonal rainfall
🌪️ 4. Localized Calamities
Covers localized risks such as:
- Landslides
- Cloudbursts
- Inundation
- Hailstorms
👨🌾 Eligibility Criteria
✔ Eligible Farmers
- All farmers growing notified crops
- Includes:
- Loanee farmers (crop loan holders)
- Non-loanee farmers
- Applicable in notified areas declared by states
❌ Not Covered
- Crops not notified for the season
- Areas not included by state governments
📄 Documents Required
Farmers need:
- 🪪 Aadhaar card
- 🏦 Bank account details
- 🌾 Land ownership / tenancy documents
- 🧾 Crop sowing declaration
- 📱 Mobile number
🖥️ How to Apply for PMFBY
🔹 Online Application
- Visit the PMFBY portal
- Select Farmer Corner
- Click Apply for Crop Insurance
- Enter Aadhaar & personal details
- Choose crop, season, and land details
- Pay premium online
- Receive confirmation SMS
🔹 Offline Application
- Apply through:
- Banks (for loanee farmers)
- Common Service Centres (CSC)
- Agriculture Department offices
⏱️ Claim Settlement Process
PMFBY uses technology-driven assessment for faster claims:
📡 Tools Used
- Satellite imagery
- Remote sensing
- Weather data
- Crop Cutting Experiments (CCE)
- Drones (in select areas)
💸 Claim Credit
- Claims are directly credited to bank accounts
- No paperwork required after enrollment
- Settlement timelines depend on state data submission
⚠️ Common Issues & Farmer Challenges
Despite its benefits, farmers may face:
- Delay in claim settlement
- Inaccurate yield estimation
- State-level implementation delays
- Lack of awareness
📌 Tip: Always keep:
- Sowing proof
- Application receipt
- SMS confirmation
📊 PMFBY vs Traditional Crop Insurance
| Feature | PMFBY | Old Insurance Schemes |
|---|---|---|
| Premium | Very low | High |
| Coverage | End-to-end | Limited |
| Technology | Satellite & CCE | Manual |
| Claim Payment | DBT | Delayed |
🌱 Impact of PMFBY on Indian Agriculture
PMFBY has:
- Insured crores of farmers
- Covered millions of hectares annually
- Reduced climate-risk anxiety
- Improved access to institutional credit
- Encouraged adoption of high-value crops
🔮 Future Improvements Suggested
Experts recommend:
- Faster claim timelines
- Universal tenant farmer inclusion
- Greater transparency in yield estimation
- Mobile app–based grievance tracking
- Stronger state-level accountability
❓ Frequently Asked Questions (FAQs)
Q: Is PMFBY compulsory?
Mandatory for loanee farmers (in some states); optional for others.
Q: Can tenant farmers apply?
Yes, if supported by state rules and documentation.
Q: Is Aadhaar mandatory?
Yes, for DBT-based claim settlement.
🏁 Conclusion
The Pradhan Mantri Fasal Bima Yojana is a critical risk-mitigation tool for Indian farmers facing increasing climate uncertainty. By offering low premiums, wide coverage, and technology-driven claims, PMFBY plays a vital role in protecting farm incomes and sustaining agricultural livelihoods.
For maximum benefit, farmers must enroll on time, choose correct crop details, and ensure accurate documentation.
