Key Highlights
- Since its launch in February 2016, PMFBY has disbursed roughly ₹1.75 lakh crore to more than 23.22 crore farmers.
- Premiums are capped at 2 % for Kharif food and oilseed crops, 1.5 % for Rabi crops, and 5 % for commercial/horticultural produce, with the government bearing the balance.
- Claims are settled within two months of harvest, enabling rapid financial relief.
- Satellite imagery, drones and the YES‑TECH yield‑estimation system are used to gauge loss with high precision.
- The Union Cabinet has earmarked ₹69,515.71 crore for the scheme’s continuation into FY 2025‑26.
Detailed Insights
The Pradhan Mantri Fasal Bima Yojana (PMFBY) was instituted to shield Indian cultivators from the vagaries of weather, pests and diseases. By limiting the farmer’s premium contribution and subsidising the remainder, the programme has achieved mass adoption across 23 states and Union Territories. The accelerated claims settlement window—typically under 60 days post‑harvest—has been pivotal in preventing income shocks and preserving livelihood stability.
Technological integration has been a cornerstone of the scheme’s evolution. Remote‑sensing satellites furnish greyscale and multispectral data that inform loss estimates, while drones provide field‑level verification. The introduction of YES‑TECH in Kharif 2023 refined yield‑loss calculations, reducing disputes and enhancing transparency.
Looking ahead, the allocation of over ₹69 thousand crore for FY 2025‑26 underscores the government’s resolve to sustain a robust risk‑mitigation framework. Continuous upgrades in data analytics and climate‑risk modeling are expected to further boost the scheme’s efficacy.
Key Concepts
- Premium Capping: The statutory limit on the amount a farmer must pay for insurance coverage, varying by crop season and type.
- YES‑TECH: Yield Estimation System Based on Technology, a GIS‑enabled tool that quantifies expected versus actual yields to determine compensation.
- Remote Sensing: The acquisition of information about crops from satellite or aerial platforms without physical contact, used to assess damage objectively.
- Non‑Loanee Farmer: A cultivator who opts into the insurance scheme without taking a credit loan, indicating voluntary participation.
- Restructured Weather‑Based Crop Insurance Scheme (RWBCIS): A complementary insurance product that triggers payouts based on predefined weather parameters.