Pradhan Mantri Fasal Bima Yojana (PMFBY), Objectives, Eligibility, Impact

Agriculture plays a major role in India’s economy. A large number of people in our country depend on farming for their livelihood. However, natural disasters, irregular rainfall, pest attacks, and climate change often bring huge losses to farmers. This makes farming uncertain and risky. To solve this problem and protect the income of farmers, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.

The Pradhan Mantri Fasal Bima Yojana is a crop insurance scheme that helps farmers recover from crop loss due to natural causes. It ensures that farmers do not suffer financially when their crops fail. The scheme has replaced earlier insurance programs and now uses better technology to estimate crop loss and settle claims faster.

In this article, we will understand what the Pradhan Mantri Fasal Bima Yojana offers, who can benefit from it, how it has improved over the years, and how it helps make farming a safer occupation for millions of Indians.

What is Pradhan Mantri Fasal Bima Yojana?

The Pradhan Mantri Fasal Bima Yojana is the government’s main crop insurance scheme. It was launched in 2016 by the Ministry of Agriculture and Farmers Welfare. It follows the idea of “One Nation – One Scheme” and aims to give equal benefits to all farmers across the country.

Under this scheme, farmers get insurance cover for food crops, oilseeds, and certain horticultural crops. If crops are damaged due to natural calamities like floods, drought, or hailstorms, farmers can claim compensation. The goal of the Pradhan Mantri Fasal Bima Yojana is to reduce the burden of crop loss and make farming more secure.

Earlier schemes like the National Agricultural Insurance Scheme (NAIS) and the Modified NAIS were removed to make way for this simpler and better plan. Over the years, many updates have been made to improve its features and make the process quicker and more farmer-friendly.

Objectives of Pradhan Mantri Fasal Bima Yojana

The main aim of the Pradhan Mantri Fasal Bima Yojana is to help farmers during tough times caused by crop loss. It does this by offering financial protection and encouraging better farming practices. Here are the key objectives of the scheme:

To Provide Financial Help

The scheme supports farmers when their crops get damaged due to unexpected events. This prevents financial stress and helps them continue farming without depending on loans or selling their land.

To Stabilize Farmers’ Income

When farmers lose their crops, their income also drops. The Pradhan Mantri Fasal Bima Yojana helps them maintain regular income levels even in bad seasons.

To Encourage Better Farming Methods

With the security of crop insurance, farmers are more likely to invest in good-quality seeds, modern tools, and advanced farming techniques.

To Promote Agricultural Credit Flow

The scheme supports the flow of loans and credit to the agricultural sector. This helps the country’s economy and ensures long-term growth in farming.

Coverage Under Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana provides coverage for several types of crop loss. It covers the following:

1. Natural Calamities: Events like floods, droughts, dry spells, landslides, and hailstorms are covered under the scheme. These often lead to large-scale crop damage.
2. Pests and Diseases: Pest attacks and plant diseases that affect the overall yield are also included in the scheme.
3. Post-Harvest Loss: Sometimes crops get damaged after harvest due to unseasonal rains or storms. The Pradhan Mantri Fasal Bima Yojana provides protection during this stage too.

However, some situations are not covered by the scheme. These include:

• Loss due to war or riots

• Damages caused by animals

• Loss due to nuclear risks

• Malicious or criminal damage

Recent Changes and Revamp in PMFBY

In 2020, the Government made major changes to improve the performance of the Pradhan Mantri Fasal Bima Yojana. These reforms made the scheme more flexible and transparent for both states and farmers.

The following are the key changes introduced:

• Farmers who do not take loans from banks are no longer forced to enroll. Now, it is voluntary for all.

• The share of the Central Government in premium subsidy for northeastern states has been increased to 90%.

• Use of technology like mobile apps, remote sensing, and drones is now allowed to estimate crop damage faster.

• States are allowed to choose their own risk coverage and scale of finance.

• A penalty is imposed on states if they delay the release of their share of premium subsidies.

• Insurance companies must spend 0.5% of the collected premium on awareness campaigns.

These changes ensure that the Pradhan Mantri Fasal Bima Yojana runs more efficiently and meets the needs of farmers better.

PMFBY Eligibility and Enrolment 

The Pradhan Mantri Fasal Bima Yojana is open to all farmers. However, the rules for joining are slightly different for those who take bank loans and those who don’t.

• Farmers who take loans from banks are automatically enrolled in the scheme (before Kharif 2020).

• After the changes, even those farmers can now choose whether or not to enroll.

• Farmers must own or cultivate the land and grow crops listed in the district-level notification.

• The enrolment process can be done online or through banks and Common Service Centres (CSCs).

Documents like land records, sowing proof, Aadhaar card, and bank details are required for registration.

Impact of Pradhan Mantri Fasal Bima Yojana on Indian Farmers

Since its launch, the Pradhan Mantri Fasal Bima Yojana has had a major impact on Indian agriculture. Millions of farmers have benefited from the scheme.

• The scheme has helped reduce farmers’ dependence on moneylenders.

• With insurance support, farmers feel more secure about trying new crops or improving their methods.

• Quick settlement of claims has allowed farmers to recover faster from losses.

The government continues to invest heavily in the scheme. For the year 2021–22, ₹16,000 crore was allocated for the Pradhan Mantri Fasal Bima Yojana, an increase from the previous year.

The Pradhan Mantri Fasal Bima Yojana is more than just an insurance scheme. It is a promise by the Government of India to stand by its farmers. It reduces the risk that comes with farming, gives financial support in times of loss, and encourages modern and better farming practices.

While there is still room for improvement, the revamped features, better technology use, and increased awareness have made this scheme an important step toward making farming a stable and secure livelihood.

Pradhan Mantri Fasal Bima Yojana FAQs