Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched from Kharif 2016 with aim to support production in agriculture by providing an affordable crop insurance product to ensure comprehensive risk cover for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest stage. The Scheme has completed 8 crop seasons and is being implemented across States/Union Territories (UTs)

Objective of the Scheme

PMFBY aims at supporting sustainable production in agriculture sector by way of:

1. Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
2. Stabilizing the income of farmers to ensure their continuance in farming.
3. Encouraging farmers to adopt innovative and modern agricultural practices.
4. Ensuring credit worthiness of the farmers, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting the farmers from production risks.

Coverage of Farmers

All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. However, farmers should have insurable interest for the insured crops and lands. Such farmers are required to submit necessary documentary evidence of land records prevailing in the State (Records of Right (RoR), Land Possession Certificate (LPC) etc.) and/or applicable contract/ agreement details/ other documents notified/ permitted by concerned State Government in case of sharecroppers/tenant farmers and the same should be defined by the respective States in the notification itself. Such farmers are also required to essentially submit Aadhaar Number and declaration about the crops own/ crops intended to be sown.

Coverage of Crops

1. Food crops (Cereals, Millets and Pulses).
2. Oilseeds.
3. Annual Commercial / Annual Horticultural crops.

In addition, pilots for coverage can be taken for those perennial horticultural/ commercial crops for which standard methodology for yield estimation is available.

Coverage of Risks and Exclusions:

Basic Cover: The basic cover under the scheme covers the risk of loss of yield tostanding crop (sowing to harvesting).This comprehensive risk insurance is provided to cover yield losses on an area based approach basis due to non-preventable risks like drought, dry spells, flood, inundation, wide spread pest and disease attack, landslides, natural fire due to lightening, storm, hailstorm, and cyclone.

Add-On Coverage 

Apart from the mandatory basic cover, the State Governments/ UTs, in consultation with the State Level Coordination Committee on Crop Insurance (SLCCCI) may choose any or all of the following add-on covers based on the need of the specific crop/area in their State to cover the following stages of the crop and risks leading to crop loss.

Prevented Sowing/Planting/Germination Risk

Insured area is prevented from sowing/planting/germination due to deficit rainfall or adverse seasonal/climatic conditions.

Mid-Season Adversity

Loss in case of adverse seasonal conditions during the crop season viz. floods, prolonged dry spells and severe drought etc., wherein expected yield during the season is likely to be less than 50% of the normal yield. This add-on coverage facilitates the provision for immediate relief to insured farmers in case of occurrence of such risks.

Post-Harvest Losses 

Coverage is available only up to a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition depending on requirement of the crops in that area, in the field after harvesting against specific perils of hailstorm, cyclone, cyclonic rains and unseasonal rains.

Localized Calamities

Loss/damage to notified insured crops resulting from occurrence of identified localized risks of hailstorm, landslide, inundation, cloudburst and natural fire due to lightening affecting isolated farms in the notified area.

Add-on coverage for crop loss due to attack by wild animals

The States may consider providing add-on coverage for crop loss due to the attack by wild animals wherever the risk is perceived to be substantial and is identifiable.