EconomicsSource: Press Information Bureau
Pradhan Mantri Fasal Bima Yojana: A Pillar of Agricultural Risk Management
Tuesday, 1 September 2026
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Last Updated: 01-09-2026. The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a cornerstone of agricultural risk management, offering crop insurance to shield farmers from losses due to natural calamities. This initiative is crucial for UPSC aspirants, especially for GS Paper 3, as it addresses key issues in agriculture and disaster management.
Key Facts About Pradhan Mantri Fasal Bima Yojana
- Launched: 18th February 2016, to provide affordable crop insurance.
- Premium Structure: Farmers pay 2% for Kharif, 1.5% for Rabi, and up to 5% for commercial crops.
- Coverage: Includes natural calamities, pests, diseases, and post-harvest losses.
- Allocation: ₹12,200 crore for 2026–27 to enhance farmer resilience.
- Implementation: Active in 25 States and Union Territories during Kharif 2026.
- Impact: Over 92.46 crore farmer applications insured since inception.
India's Agricultural Insurance Landscape
The PMFBY plays a significant role in India's agricultural insurance landscape, aligning with the nation's goals of income stability and climate-resilient agriculture. With its extensive reach, the scheme supports India's strategic objectives of enhancing food security and farmer welfare, contributing to economic growth and sustainability.
UPSC Relevance
- GS Paper 3: Agriculture, Disaster Management, and Economic Development.
- Prelims: Focus on scheme details, premium rates, and coverage specifics.
- Mains: Analytical themes on agricultural risk management and policy effectiveness.
- Essay Paper: Topics on sustainable agriculture and climate resilience.
FAQ Section
- What is the Pradhan Mantri Fasal Bima Yojana? It is a crop insurance scheme launched in 2016 to provide affordable insurance coverage to farmers against crop losses due to natural calamities and production risks.
- Why is PMFBY important? PMFBY is vital for ensuring farmer income stability and resilience against climate-related risks, contributing to India's food security and sustainable agricultural practices.
- What are the key features of PMFBY? The scheme features affordable premiums, extensive coverage of natural and post-harvest risks, and a significant financial allocation to support farmers across India.
Detailed Coverage
- Launched: February 18, 2016.
- Objective: Provides affordable crop insurance to protect against natural calamities.
- Premium Structure: 2% for Kharif, 1.5% for Rabi, and up to 5% for commercial crops.
- Coverage: Includes pre-sowing risks, standing crop losses, localized calamities, and post-harvest losses.
- Prevented Sowing: Claims of up to 25% for unable to sow due to weather.
- Inclusive Coverage: Covers loanee, non-loanee, tenant, and sharecropper farmers.
- Implementation: Active in 25 States and Union Territories.
- Achievements: Over 92.46 crore applications insured, with claims exceeding ₹2.06 lakh crore.
- Digital Innovations: NCIP, Digiclaim, and CCE-Agri App enhance transparency and efficiency.
- RWBCIS: Weather-based insurance mechanism for additional coverage.
- Impact: Strengthens farmer resilience and supports food security.
- Government Support: Continuous initiatives to improve scheme implementation.
- Future Focus: Aims to enhance climate-resilient agriculture.
- Grievance Resolution: KRPH helpline with a 99.66% resolution rate.
- Financial Support: A crucial part of India's agricultural risk management framework.
Economics