The Pradhan Mantri Fasal Bima Yojana (PMFBY) was inaugurated by the Government of India on 18 February 2016 to offer end-to-end insurance coverage and financial assistance to farmers in case of crop failure. The scheme is to stabilize farmers’ income, promote farmers adopting cutting-edge and innovative techniques of agriculture, and make agriculture sustainable in the nation.
Under PMFBY, farmers pay a very small premium — 2% on Kharif crops, 1.5% on Rabi crops, and 5% on commercial and horticultural crops — while the government pays the rest of the premium. Insurance is for loss caused by natural calamities like drought, floods, cyclones, pests, and diseases. Payment is made as per crop loss estimates conducted through remote sensing technology and mobile apps for ensuring transparency and efficiency.
The program is operated by government as well as private insurance firms, which are coordinated by state governments and the Ministry of Agriculture. PMFBY has emerged as a central pillar of India’s agricultural risk protection program, allowing millions of farmers to recover from financial stress resulting from uncertain weather and crop failure.