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18 June 2026 2 views

PMFBY (Pradhan Mantri Fasal Bima Yojana) — Crop Insurance Scheme

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theIAShub
18 Jun, 2026
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PMFBY (Pradhan Mantri Fasal Bima Yojana) — Crop Insurance Scheme
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Flagship crop insurance scheme providing financial support to farmers against crop failures and natural calamities — recommended as preventive alternative to ex-post loan waivers.

Why in News

Policy experts advocate expanding coverage and streamlining payout processes of PMFBY to protect farmers against climate risks before they fall into debt traps necessitating loan waivers.

Key Facts

  • Launch Year: February 2016, replacing earlier schemes NAIS and MNAIS.
  • Objective: Provide financial support to farmers suffering crop loss/damage from unforeseen events (droughts, floods, pests, diseases). (UPSC Mains Usage: GS3 — Agriculture — Risk mitigation and agricultural insurance)
  • Premium Rates: Farmers pay maximum 2% of sum insured for Kharif crops, 5% for Rabi crops, and 5% for horticultural/commercial crops.
  • Subsidy: Balance premium subsidized 50:50 by Centre and State governments (90:10 for North-Eastern states).
  • Coverage: All food crops (cereals, millets, pulses), oilseeds, and annual commercial/horticultural crops.
  • Technology Use: Leverages remote sensing, drones, smartphones for yield estimation and faster claim settlement.
  • Implementation Challenges: Delayed claim settlements, exclusion of tenant farmers, and low awareness limit effectiveness as preventive tool against agrarian debt.

Quick Revision Box

Term

Detail

PMFBY

Pradhan Mantri Fasal Bima Yojana, launched February 2016

Premium (Kharif)

Maximum 2% of sum insured paid by farmer

Premium (Rabi)

Maximum 1.5% of sum insured paid by farmer

Subsidy Sharing

50:50 Centre:State (90:10 for North-Eastern states)

Coverage

Food crops, oilseeds, annual commercial/horticultural crops

Technology

Uses remote sensing, drones, smartphones for yield estimation and claims


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