Pradhan Mantri Fasal Bima Yojana Completes Nine Years: A Lifeline for Indian Farmers

A Milestone in Agricultural Risk Management

Pradhan Mantri Fasal Bima Yojana Completes Nine Years: A Lifeline for Indian Farmers: The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched on February 18, 2016, has emerged as one of the world’s largest crop insurance programs, marking nine successful years in 2025. With over ₹1.75 lakh crore paid in claims and 23.22 crore farmers benefited, this scheme has significantly improved financial security for India’s agricultural community, especially during natural calamities.

Affordable Insurance and Wide Coverage

PMFBY remains popular due to its low premium rates. Farmers pay just 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops, while the government bears the rest. This affordable model ensures that even small and marginal farmers can access crop insurance against losses from floods, droughts, pests, and diseases, helping stabilize their income after a failed harvest.

Technology Driving Efficiency

The scheme’s evolution includes the integration of satellite imagery, drone surveys, and remote sensing technology to assess crop losses more accurately. The introduction of YES-TECH (Yield Estimation System Based on Technology) during Kharif 2023 was a landmark step, helping officials make quicker and more precise yield assessments, thereby reducing delays in claim disbursals.

Renewed Government Support for 2025-26

Recognizing the scheme’s value, the Union Cabinet in January 2025 approved its continuation until 2025-26 with an allocation of ₹69,515.71 crore. Alongside PMFBY, the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) also received support, showcasing the government’s long-term commitment to agricultural resilience and farmer welfare.

Growing Trust Among Non-Loanee Farmers

A remarkable shift has been the growing participation of non-loanee farmers, who voluntarily opt into the scheme. In 2023-24, they made up 55% of total insured farmers, indicating a rise in awareness and trust. This signals a transformation in farmer behavior, with many now proactively securing their crops rather than relying solely on institutional mandates.

A Resilient Path Ahead for Indian Agriculture

Beyond just insurance, PMFBY is building a safety net for Indian agriculture, enabling farmers to recover from setbacks and encouraging sustainable farming practices. As climate-related risks grow, the scheme’s continued support and innovation are critical to ensuring that farming remains a viable livelihood in rural India.

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