The Central Government on 1 January 2025 approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of Rs.69,515.71 Crore from 2021-22 to 2025-26. According to an official Government release, "The decision will help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26."

 

Union Minister for Rural Development, Agriculture and Farmers Welfare, Shivraj Singh Chouhan, while expressing pleasure at the decisions of the Union Cabinet, said that the new year should bring happiness and prosperity in the lives of the people of our country. He added that we should be able to fulfil Prime Minister Narendra Modi's resolve of a developed India. 

 

Launched in 2016 by Prime Minister Narendra Modi, the scheme offers a comprehensive shield against crop losses caused by unpredictable natural hazards. This protection stabilizes farmers' income and encourages them to adopt innovative practices.

 

The (PMFBY) envisages improved technology, including satellite imagery, drones, Unmanned Aerial Vehicles (UAV) and remote sensing. This is for various applications such as crop area estimation and yield disputes and also promotes the use of remote sensing and other related technology for Crop Cutting Experiments (CCEs) planning, yield estimation, loss assessment, assessment of prevented sowing areas and clustering of districts.

 

The scheme has many benefits for farmers, including affordable premiums, comprehensive coverage, timely compensation, and technology-driven implementation. The maximum premium payable by the farmer will be 2 percent for the Kharif food and oilseed crops. For rabi food and oilseeds crops, it is 1.5 percent, and for yearly commercial or horticultural crops, it will be 5 percent. The Government subsidizes the remaining premium. The scheme covers natural disasters (droughts, floods), pests, diseases, and post-harvest losses due to local risks like hailstorms and landslides. The risks covered under the scheme include Yield Losses (Standing Crops), Prevented Sowing, Post-harvest Losses, and Localised Calamities.

 

The Government has made several interventions to ensure better transparency, accountability, and timely payment of claims to the farmers since its launch in 2016. As a result, the area and farmers covered under the scheme in 2023-24 are at an all-time high. The scheme is now the largest in the world regarding farmer applications. Some states have further waived off farmers' share of premiums, which has resulted in a much smaller burden on farmers. Over the past nine years, the Pradhan Mantri Fasal Bima Yojana (PMFBY) has transformed Indian agriculture by providing farmers with a comprehensive safety net against crop losses due to natural calamities.