Context: 

The central Government celebrated the ninth anniversary of Pradhan Mantri Fasal Bima Yojana on 18^th February. 

More on the News

• PMFBY has disbursed Rs 1.75 lakh crore in claims to more than 23.22 crore farmers across 23 states and UTs over the past nine years
• In January 2025, The Union Cabinet approved the continuation of Pradhan Mantri Fasal Bima Yojana till 2025-26 with a total budget of ₹69,515.71 crore.

Key achievements of the scheme:

• Since its launch, the government has made several interventions to enhance transparency and accountability, resulting in record-high farmer participation in 2023-24.
• In 2023-24, non-loanee farmers’ coverage increased to 55% of the total coverage while the total sum insured stands at Rs.17.29 lakh crore.
• Till the 2023-24 season, 63.19 crore farmer applications over an area of 42.21 crore hectares for a sum insured of Rs. 17,29,395 crore have been insured under the scheme. 
• The scheme witnessed a 25% growth in farmer enrolment in 2023-24 compared to the previous year, showing its growing popularity.
• The Gross Cropped Area (GCA) covered in 2023-24 was 604 lakh Ha (hectare) as compared to 501 lakh Ha. in 2022-23.

Pradhan Mantri Fasal Bima Yojana

• Launched on 18th February 2016, "Pradhan Mantri Fasal Bima Yojana" is a crop insurance scheme by the Department of Agriculture, Cooperation and Farmers’ Welfare, Ministry of Agriculture. 
• PMFBY aims to provide financial protection to farmers against crop loss due to natural disasters (hail, drought, famine), pests, and diseases. 
• PMFBY provides crop insurance at a cost-effective premium to all Indian farmers. 
• PMFBY is an affordable crop insurance product implemented through a network of insurance companies and banks. 
• The scheme covers over 50 crore farmers and provides insurance coverage for over 50 different crops.
• As of February 2024, 27 States/ Union Territories (UTs) have implemented the scheme in one or more seasons since inception.

Risk covered under the scheme:

• Yield Losses (Standing Crops): Covers yield losses due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Tornado, Floods, Landslide, Pests and Diseases, and Drought.
• Prevented Sowing: Covers farmers who are unable to plant crops due to unfavourable weather conditions. Eligible for indemnity claims of up to 25% of the sum insured.
• Post-harvest Losses: Coverage is available for up to 14 days after harvesting for crops stored in "cut and spread" condition (crops left in the field to dry).
• Localised Calamities: Provides coverage for losses from localised calamities affecting specific farmlands in a notified area.

Key Benefits of the Scheme 

Affordable Premiums: The maximum premium payable by the farmer will be 2% for the Kharif food and oilseed crops. 

• For rabi food and oilseed crops, it is 1.5% and for yearly commercial or horticultural crops, it will be 5%. 
• The remaining premium is subsidized by the government.

Technology-Driven Implementation: PMFBY integrates advanced technologies like satellite imagery, drones, Unmanned Aerial Vehicles (UAV) and remote sensing for Crop Cutting Experiments (CCEs) planning, yield estimation, loss assessment, etc.

Timely Compensation: PMFBY aims to process claims within two months of the harvest.