Pradhan Mantri Fasal Bima Yojana | PMFBY Scheme Details

Pradhan Mantri Fasal Bima Yojana: Agriculture is the backbone of India’s economy, employing over half of the country’s workforce. However, it is highly vulnerable to various risks, including unpredictable weather, pests, and diseases. To support and protect the interests of farmers, the Indian government introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.

This comprehensive crop insurance scheme aims to provide financial security to farmers in case of crop loss due to natural calamities, thereby ensuring food security and the well-being of rural communities.

The official website for the Pradhan Mantri Fasal Bima Yojana (PMFBY) was “” The GOV website typically provides comprehensive information about the PMFBY scheme, including its objectives, coverage, premium rates, and benefits. You can find detailed scheme documents, guidelines, and notifications.

Scheme NamePradhan Mantri Fasal Bima Yojana (PMFBY)
Launched Year2016
ObjectiveCrop insurance and financial support for farmers in case of crop loss due to natural calamities.
CoverageFood crops, oilseeds, annual commercial/horticultural crops. Perennial crops with available yield estimation methodology.
EligibilityLoanee and non-loanee farmers.
Premium RatesVary by crop and season, with government subsidy if rates exceed specified levels.
ExclusionsLosses due to war, nuclear risks, malicious damage, and preventable risks.
Enrollment ProcessThrough the National Crop Insurance Portal (NCIP).
Recent DevelopmentsSome states have opted in/out. Scheme remains voluntary for states and farmers.
Official Website

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Objectives of PMFBY

The PMFBY has several important objectives:

  1. Financial Support: PMFBY offers financial assistance to farmers who face crop loss or damage due to unforeseen events, ensuring they do not face severe economic hardships.
  2. Income Stabilization: It aims to stabilize farmers’ incomes, enabling them to continue agricultural activities without disruption.
  3. Promotion of Modern Practices: The scheme encourages farmers to adopt innovative and modern agricultural practices, enhancing productivity and sustainability.
  4. Credit Flow: By providing insurance coverage, PMFBY encourages financial institutions to provide credit to the agriculture sector, contributing to food security, crop diversification, and agricultural growth.

Coverage and Eligibility

The PMFBY is available to both loanee and non-loanee farmers:

  • Loanee Farmers: Farmers who have been sanctioned Seasonal Agricultural Operations (SAO) loans from financial institutions for the notified crop season are covered compulsorily.
  • Non-Loanee Farmers: For non-loanee farmers, participation is optional.

The insurance coverage is equivalent to the sum insured per hectare, as defined by the government notification, multiplied by the sown area for the notified crop. The coverage extends to:

  • Food crops (cereals, millets, and pulses)
  • Oilseeds
  • Annual commercial/horticultural crops
  • Perennial crops where yield estimation methodologies are available

Premium Rates

The premium rates for PMFBY vary depending on the type of crop and season:

Type of CropKharif Season Premium Rate (%)Rabi Season Premium Rate (%)
Food grains including Cereals, Pulses, and Oilseeds2%1.5%
Annual Horticulture and Commercial Crops5%

If the premium rate quoted by the insurance company is higher than the specified rates, the government (State and Central) provides a subsidy of 50%. If the rate is lower, no subsidy is paid.

Coverage and Exclusions

PMFBY covers various stages of crop risks, including:

  1. Prevented Sowing/Planting/Germination Risk: If sowing or germination is prevented due to adverse weather conditions, farmers receive 25% of the sum insured.
  2. Standing Crop (Sowing to Harvesting): Comprehensive risk insurance covers losses due to drought, flood, pests, diseases, and other natural calamities.
  3. Post-Harvest Losses: Coverage is available for up to two weeks after harvesting for specific perils like hailstorms, cyclones, and unseasonal rains.
  4. Localized Calamities: Losses due to hailstorms, landslides, inundation, cloud bursts, and natural fires caused by lightning affecting isolated farms are covered.

General exclusions include losses arising from war, nuclear risks, malicious damage, and preventable risks.

Enrollment Process

Farmers can enroll in PMFBY through the National Crop Insurance Portal (NCIP):

  • Loanee Farmers: Banks lending Seasonal Crop Loans upload data in NCIP.
  • Non-Loanee Farmers: Intermediaries, Common Service Centers (CSCs), farmers, or other agencies upload data in NCIP.

Premium payments are accepted through NEFT only, and offline applications are not accepted.

State Wise Farmer Details Report – Kharif 2017

Sl. No.StatesFarmers InsuredArea Insured (ha)Sum Insured (in Rs. Crore)Farmers Premium (in Rs. Crore)GOI Subsidy (in Rs. Crore)State Subsidy (in Rs. Crore)Gross Premium (in Rs. Crore)Claim Paid (in Rs. Crore)Farmers Benefitted
1Andhra Pradesh1,597,4351,850,633.719,662.84228.97465.59465.591,160494.63597,978
8Himachal Pradesh125,46840,833.95139.622.850.320.3233.1223,573
9Jammu & Kashmir85,61985,215.90249.585.468.428.42225.9514,129
13Madhya Pradesh3,584,6846,520,763.3224,542.31508.061,718.871,718.873,9465,428.311,868,844
19Tamil Nadu146,220115,254.67837.5823.4420.4620.466440.9533,763
22Uttar Pradesh2,499,9442,356,194.859,179.65184.40257.54257.54699247.42396,460
24West Bengal2,350,3361,157,280.626,150.18111.5475.1975.19262165.57279,643
Grand Total34,776,05534,053,449129,9133,0398,3398,39019,76817,21013,793,975

What is the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

PMFBY is a government-sponsored crop insurance scheme in India aimed at providing financial protection to farmers in case of crop failure due to natural calamities, pests, or diseases. It helps farmers manage risks associated with agricultural activities.

Who is eligible to enroll in PMFBY?

All farmers who have taken Seasonal Agricultural Operations (SAO) loans from financial institutions are covered compulsorily. The scheme is optional for non-loanee farmers, and they can choose to enroll based on their risk perception.

How is the premium calculated for PMFBY?

The premium rates for PMFBY are heavily subsidized. Farmers typically pay a nominal premium based on the type of crop and the season (Kharif or Rabi). The remaining premium amount is shared between the Central and State governments. The premium rates are uniform across the country.

What risks are covered under PMFBY?

PMFBY covers several stages of crop risks, including prevented sowing/planting/germination risk, standing crop (sowing to harvesting) risks, post-harvest losses, and localized calamities. However, losses due to war, nuclear risks, malicious damage, and other preventable risks are excluded.

How can farmers apply for PMFBY and file claims?

Farmers can enroll in PMFBY through the National Crop Insurance Portal (NCIP), which is managed by the Ministry of Agriculture & Farmers Welfare. Claims can be initiated by reporting crop losses to the insurance company, concerned bank, local agriculture department, or through a toll-free number provided by the scheme. Timely reporting and documentation are essential for claims processing.


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