The Ministry of Agriculture and Farmers Welfare has outlined the scope and performance of the Pradhan Mantri Fasal Bima Yojana (PMFBY), India’s centralized crop insurance programme. The scheme protects farmers across the country against income losses from natural disasters, pests, diseases and adverse weather. With a budget allocation of ₹12,200 crore for 2026–27, PMFBY continues to expand its reach to farmers nationwide.
Coverage, Numbers and How the Scheme Works
PMFBY covers crop losses at different stages: yield losses from drought, floods, cyclones, hailstorms, pests and diseases; prevented sowing when farmers cannot plant due to bad weather; post-harvest losses from cyclones or unseasonal rain for up to 14 days after harvest; and localized calamities like hailstorms or landslides at individual farm level.
Farmers pay a low premium: 2% for Kharif and 1.5% for Rabi foodgrains and oilseeds, and 5% for commercial and horticultural crops. The Central and State Governments together subsidise the remaining amount equally. In North-Eastern and Himalayan states, the government subsidy ratio is 90:10.
Since the scheme’s launch in Kharif 2016 through Rabi 2025–26, more than 92.46 crore farmer applications have been insured. Over 26.33 crore applications have received claims totalling ₹2.06 lakh crore. In Kharif 2025, claims worth ₹9,837.61 crore were paid to 60.89 lakh farmers.
The scheme covers both farmers with bank loans (loanee farmers) and those without (non-loanee farmers). Tenant farmers and sharecroppers are also eligible. Since 2018, more than 1.44 crore such farmers have enrolled.
Technology-driven systems strengthen the scheme: the Yield Estimation System based on Technology (YES-TECH) uses remote sensing for accurate yield estimates, while the Weather Information Network and Data System (WINDS) collects hyperlocal weather data for fair claim settlement. The National Crop Insurance Portal enables digital enrolment and claims processing, with ₹55,000 crore in claims paid through this platform since its introduction.
What This Means for You
If you are a farmer, you now have access to affordable insurance against crop losses from weather, pests and diseases. Paying a small premium protects your income when crops fail, helps you repay loans and invest in the next season. Digital systems mean faster, transparent claim settlement directly into your bank account. The scheme operates in 25 states and union territories, with major agricultural states like Uttar Pradesh, Haryana and Rajasthan seeing strong growth in participation.