PMFBY’s Decade Of Crop Insurance Shows Scale, Technology And Challenges In Protecting Indian Farmers

India’s flagship crop insurance scheme PMFBY has insured millions of farmers over ten years, combining affordability, technology and subsidies, but faces challenges amid rising climate risks.

Indian agriculture remains the backbone of food security and rural livelihoods, yet farmers continue to face risks beyond their control. Droughts, floods, cyclones, pests and unseasonal rainfall can wipe out months of effort in hours. Against this backdrop, the Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in February 2016, has become a key instrument of risk management.

The scheme was designed to ensure farmers do not bear the full financial burden of crop losses caused by natural calamities. Since inception, more than 92.46 crore farmer applications have been insured, while 26.33 crore claims worth over ₹2.06 lakh crore have been settled. These figures underline the scale of the government’s effort to protect agricultural livelihoods.

Affordable Premiums And Subsidies

PMFBY’s strength lies in its affordability. Farmers pay a maximum premium of 2 percent for Kharif foodgrain and oilseed crops, 1.5 percent for Rabi crops, and 5 percent for commercial and horticultural crops. The rest is subsidised by central and state governments. For north-eastern and Himalayan states, the subsidy follows a 90:10 sharing pattern, making crop insurance accessible even to small farmers.

The scheme covers both loanee and non-loanee farmers, including tenant farmers and sharecroppers. Notably, nearly half of those enrolled have been non-loanee farmers, showing crop insurance is increasingly seen as voluntary protection rather than just linked to credit.

The Modi government has sought to integrate technology into PMFBY to improve transparency and speed. Platforms such as the National Crop Insurance Portal and DigiClaim, along with the Crop Cutting Experiment Agri App, have reduced manual intervention.

Systems like YES-TECH (Yield Estimation System Based on Technology) and WINDS (Weather Information Network and Data System) use remote sensing and weather data to improve yield estimation and risk assessment. Faster and fairer claim settlement is critical to maintaining credibility.

Human Impact And State Participation

The scheme’s impact is best illustrated by cases like Anwar Hussain, a small farmer from Assam’s Nagaon district. After heavy rains damaged his crop, a premium of ₹100 under PMFBY helped him secure compensation of ₹50,600, enabling him to recover financially and prepare for the next season.

State participation has also grown. Andhra Pradesh rejoined in Kharif 2022, Jharkhand in 2024, and West Bengal in 2026, while Bihar will implement PMFBY from Rabi 2026-27. Currently, the scheme operates in 25 states and union territories.

As of August 27, 2026, 241.38 lakh farmers were insured under Kharif 2026, covering 278.12 lakh hectares. The Union Budget 2026-27 allocated ₹12,200 crore to PMFBY, reaffirming commitment to farmer protection.

Yet challenges remain. Climate change is increasing the frequency of extreme weather events, making risk management more urgent. Faster claim settlement, greater awareness, effective grievance redressal and wider participation must remain priorities.