Introduction

Agriculture is the backbone of India’s economy, and the well-being of farmers is crucial for the country’s progress. The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, has been a significant step towards ensuring financial stability for farmers by providing them with comprehensive crop insurance. Recently, the government announced the extension of PMFBY and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) till 2025-26, with a total outlay of ₹69,515.71 crore. This decision reinforces the government’s commitment to safeguarding farmers against crop losses due to unpredictable weather and other risks.

Overview of PMFBY

{ PMFBY was introduced to replace earlier crop insurance schemes that had various inefficiencies and limited coverage. The scheme is voluntary for states and farmers, allowing them to opt-in based on their needs and risk perception. Since its inception, 27 states and union territories have implemented the scheme at least once, with 23 states/UTs currently participating. }

The scheme covers:

• Risks of crop failure due to natural calamities, pests, and diseases
• Financial compensation to farmers for losses suffered
• Standardized premium rates, making it affordable for farmers

How PMFBY Functions

The implementation of PMFBY is a joint effort between the central and state governments, insurance companies, and banks. The major responsibilities include:

• Selection of insurance models and companies through a transparent bidding process
• Enrollment of farmers via banks and insurance providers
• Assessment of crop yield/loss for claims calculation
• Monitoring and grievance redressal mechanisms

Farmers can apply for PMFBY through their respective banks or designated insurance companies. In the event of crop damage, insurance companies process claims based on yield data collected by state agencies.

Challenges and Solutions in Implementation

Despite its benefits, the scheme has faced certain challenges, including delays in claim settlements and disputes between state governments and insurance providers. Some of the key issues include:

• Non-payment or delayed payment of claims
• Discrepancies in yield data leading to claim disputes
• Delay in the release of state government’s share of funds
• Insufficient deployment of personnel by insurance companies

To address these issues, the government has strengthened the grievance redressal system by introducing the Krishi Rakshak Portal and Helpline (KRPH) with a nationwide toll-free number 14447. This initiative ensures better communication between farmers and insurance companies and sets fixed timelines for resolving complaints.

Government’s Commitment to Farmers’ Welfare

To enhance transparency and efficiency, the government conducts regular monitoring through weekly video conferences, one-on-one meetings, and National Review Conferences. Over the years, the operational guidelines of PMFBY have been revised periodically to incorporate feedback from stakeholders and make the scheme more farmer-friendly.

Additionally, the government has encouraged the adoption of technology-driven solutions such as satellite imagery, remote sensing, and artificial intelligence to improve crop damage assessment and expedite the claim process. This integration of digital tools is expected to enhance the accuracy and efficiency of PMFBY.

Conclusion

The extension of PMFBY till 2025-26 with a substantial budgetary allocation is a positive step toward securing farmers from the financial burden of crop loss. By integrating technological solutions like KRPH and strengthening monitoring mechanisms, the government is ensuring that the benefits of the scheme reach the farmers effectively. While challenges remain, continuous improvements and policy revisions indicate a promising future for crop insurance in India. PMFBY not only provides financial security but also fosters confidence among farmers to invest in their agricultural activities without fear of unforeseen losses.

The scheme’s periodic updates and increasing adoption of digital solutions demonstrate the government’s resolve to build a resilient agricultural sector. With proper implementation and awareness, PMFBY has the potential to transform rural livelihoods by mitigating risks and ensuring long-term sustainability for farmers.