Exploring Pradhanmantri Fasal Bima Yojana: A Comprehensive Guide


Agriculture is the backbone of the Indian economy, providing livelihoods to a significant portion of the population. However, farmers face numerous challenges such as unpredictable weather conditions, crop diseases, and pests, which can lead to crop failure and financial distress. To provide financial protection to farmers against such risks, the Indian government launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016. This ambitious crop insurance scheme aims to boost the confidence of farmers and safeguard their financial interests. In this comprehensive guide, we will delve into the intricacies of the PMFBY, its benefits, implementation process, and frequently asked questions.

Understanding the Pradhan Mantri Fasal Bima Yojana (PMFBY)

The Pradhan Mantri Fasal Bima Yojana is a crop insurance scheme that provides comprehensive coverage to farmers in the event of crop failure due to natural calamities, pests, or diseases. The scheme replaces earlier crop insurance schemes such as the National Agricultural Insurance Scheme (NAIS) and the Modified NAIS. PMFBY aims to ensure quick settlement of insurance claims and encourage greater participation of farmers in the insurance process.

Benefits of PMFBY

  • Risk Mitigation: PMFBY provides financial support to farmers in case of crop loss due to natural calamities, thereby reducing their financial risks.
  • Affordable Premiums: The scheme offers highly subsidized premiums for farmers, making it accessible to small and marginal farmers.
  • Timely Compensation: PMFBY ensures timely settlement of claims, providing much-needed financial relief to farmers.
  • Increased Farmer Confidence: By offering a safety net against crop failures, PMFBY boosts farmer confidence and encourages them to invest in modern agricultural practices.

Implementation Process

  • Enrollment: Farmers willing to avail the benefits of PMFBY must enroll themselves at the beginning of the season through their respective financial institutions or Common Service Centers (CSCs).
  • Premium Payment: Farmers are required to pay a nominal premium amount, which is heavily subsidized by the government.
  • Crop Cutting Experiments (CCE): In case of crop loss, CCEs are conducted to assess the extent of damage and calculate the compensation amount.
  • Claim Settlement: Once the crop loss is verified, the insurance companies settle the claims within a stipulated timeframe.

PMFBY Coverage

Under the PMFBY scheme, farmers are provided insurance coverage for the following risks:

  • Natural calamities: Including drought, flood, earthquake, cyclone, cyclonic rain, hailstorm, landslide, and more.
  • Non-preventable risks: Such as pests and diseases affecting the crops.

The insurance coverage is available for all crops notified by the respective state governments.

Frequently Asked Questions (FAQs)

  1. Who is eligible to enroll in PMFBY?
  2. All farmers, including sharecroppers and tenant farmers, are eligible to enroll in the PMFBY scheme.

  3. What is the premium amount under PMFBY?

  4. The premium amount varies based on the type of crop and the level of coverage opted by the farmer. However, the premium rates are heavily subsidized, making it affordable for farmers.

  5. How is the claim amount calculated under PMFBY?

  6. The claim amount is calculated based on the extent of crop loss as determined through Crop Cutting Experiments (CCEs).

  7. Can farmers apply for PMFBY online?

  8. Yes, farmers can apply for PMFBY online through the government portal or through designated financial institutions.

  9. Is PMFBY mandatory for all farmers?

  10. While PMFBY is not mandatory, it is highly recommended for all farmers to mitigate financial risks associated with crop failures.


The Pradhan Mantri Fasal Bima Yojana is a significant step towards ensuring the financial security of farmers in India. By providing comprehensive insurance coverage against crop failures, PMFBY aims to empower farmers and strengthen the agricultural sector. The smooth implementation and timely settlement of claims are crucial for the success of the scheme. With continued support and participation from farmers and insurance agencies, PMFBY can play a pivotal role in enhancing the resilience of Indian agriculture.

1. Ministry of Agriculture & Farmers Welfare, Government of India. (https://agricoop.nic.in/)
2. Pradhan Mantri Fasal Bima Yojana portal. (https://pmfby.gov.in/)

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