9 Years of Pradhan Mantri Fasal Bima Yojana (PMFBY)

Syllabus: GS2/Government Policy & Interventions; GS3/Agriculture

Context

The Pradhan Mantri Fasal Bima Yojana (PMFBY) recently celebrated its ninth anniversary, marking nearly a decade of empowering Indian farmers with comprehensive crop insurance.

Launch: 2016 by the Ministry of Agriculture & Farmers Welfare.
Coverage: All farmers, including sharecroppers and tenant farmers, growing notified crops in designated areas.
Crops Covered:
- Food Crops (Cereals, Millets & Pulses)
- Oilseeds
- Annual Commercial & Horticultural Crops

Yield Losses (Standing Crops): Losses due to non-preventable risks like drought, flood, pests, and diseases.
Prevented Sowing: Compensation when farmers cannot sow due to adverse weather conditions.
Post-Harvest Losses: Coverage for crop losses within 14 days of harvesting due to natural calamities.
Localized Calamities: Damage due to hailstorms, landslides, cloudbursts, etc.

Farmer Enrollment: Over 40 crore farmer applications registered.
Land Coverage: More than 30 crore hectares of farmland insured.
Affordable Premium & High Claims Settled:
- Farmers paid over ₹29,000 crore as premiums.
- Over ₹1.50 lakh crore in claims disbursed, proving it to be a pro-farmer initiative.
Customized Insurance Plans: State-specific schemes and cluster-based models enhance efficiency.
Inclusive Growth: More than 70% of beneficiaries are small and marginal farmers.
Climate Risk Mitigation: Addresses challenges like erratic monsoons, droughts, floods, and unseasonal rains.

AI & Geo tagging: Enhance accuracy in crop loss assessment by enabling precise damage verification and yield estimation.
CCE-Agri App & YES-TECH: Mobile-based tools to record Crop Cutting Experiments (CCEs) and estimate yields.
National Crop Insurance Portal (NCIP): Centralized platform for real-time monitoring and claims processing.
Digital Claim Settlement: Faster payouts through mobile apps and online platforms.

Delays in Claim Settlement: Bureaucratic hurdles and disputes between insurance companies and state governments slow payouts.
State Withdrawals & Implementation Issues: States like Bihar, West Bengal, Gujarat, and Andhra Pradesh withdrew due to financial concerns over premium subsidies.
Low Awareness & Farmer Participation: Many farmers, especially in remote areas, remain unaware of the scheme’s benefits.
Data & Technology Gaps: Lack of real-time weather data and delays in crop loss assessment impact claim processing.

PMFBY 2.0 – Restructured Guidelines (2020-21):
- Voluntary Enrollment: Since 2020, participation has been made voluntary.
- State Flexibility: States can customize insurance products to meet regional agricultural needs.
Alignment with Climate Resilience Policies:
- Linked with National Adaptation Fund for Climate Change (NAFCC) to promote climate-resilient farming.
Restructured Weather-Based Crop Insurance Scheme (RWBCIS):
- A weather index-based insurance scheme introduced alongside PMFBY.
- Difference from PMFBY: RWBCIS calculates claims based on weather parameters rather than actual yield loss.

Digitization: Expanding technology use for faster claim settlements.
State Re-Engagement: Encouraging states that have withdrawn to rejoin.
Private Sector Involvement: Incentivizing private insurers to offer region-specific solutions.
Disaster Risk Reduction: Strengthening proactive risk mitigation strategies.

Source: PIB

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