In a significant milestone, the enrollment of farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY) has surged to over 40 million in the fiscal year 2023-24, marking a remarkable 27% increase from the previous year. This surge underscores the growing importance of crop insurance in safeguarding the interests of farmers across the country.
Shift in Dynamics: Embracing a Subscription-Based Model
A noteworthy shift is observed in the enrollment pattern, with 42% of farmers opting for crop insurance without availing loans from banks. This transition towards a subscription-based model reflects the increasing awareness and voluntary participation of farmers in securing their agricultural investments.
Widespread Coverage: Extending Protection Across Landscapes
The ambit of the heavily-subsidized crop insurance scheme has expanded significantly, encompassing over 60 million hectares of agricultural land in the fiscal year 2023-24, marking a substantial 21% rise from the previous fiscal year. This broad coverage underscores the scheme’s efficacy in reaching farmers across diverse agro-climatic regions.
Empowering Farmers: Delivering Substantial Returns
Since its inception in 2016, the PMFBY has disbursed claims amounting to approximately ₹1.56 trillion to farmers, against a cumulative premium contribution of ₹31,139 crore. This translates to an impressive claim-premium ratio, with farmers receiving approximately five times the premium paid, thereby offering substantial returns on their investment.
Affordable Premiums: Promoting Accessibility and Inclusivity
Under the PMFBY, farmers enjoy the benefit of affordable premiums, fixed at just 1.5% for rabi crops and 2% for kharif crops of the sum insured, with a slight increase to 5% for cash crops. This equitable premium structure promotes accessibility and inclusivity, ensuring that farmers from diverse socio-economic backgrounds can avail themselves of crop insurance protection.
Expanding Footprint: Welcoming Back States
The recent decision by Telangana to rejoin the PMFBY, along with discussions in Jharkhand to reintegrate into the scheme, reflects a growing recognition of the scheme’s efficacy in mitigating agricultural risks. Despite initial exits by certain states due to cost concerns, the scheme’s demonstrable benefits are prompting a reevaluation of participation strategies.
Continued Support: Sustaining Financial Backing
With an allocation of ₹15,000 crore for the fiscal year 2025, the PMFBY continues to receive robust financial support from the central government, reaffirming its commitment to safeguarding the interests of farmers. This sustained funding underscores the scheme’s pivotal role in bolstering agricultural resilience and promoting rural prosperity.
Shared Responsibility: Collaborative Efforts for Farmer Welfare
The PMFBY operates on a shared premium model, with contributions from both the central and state governments, ensuring collective responsibility in safeguarding farmer interests. Additionally, initiatives like universalization of the crop insurance scheme by certain states exemplify collaborative efforts aimed at promoting farmer welfare and mitigating agrarian risks.
Global Significance: A Landmark in Crop Insurance
Ranked as the third-largest insurance scheme globally in terms of premium, the PMFBY stands as a testament to India’s commitment to agricultural resilience. By shielding farmers from unforeseen adversities, this pioneering initiative reaffirms the nation’s dedication to nurturing its agrarian backbone and fostering rural prosperity.