Farming is highly dependent on factors that farmers cannot always control. A season of excessive rain, drought, flood, cyclone, pest attack or crop disease can damage months of work and leave a farming family facing a serious financial loss. Crop insurance is intended to reduce this risk by providing financial protection when insured crops suffer losses covered under the policy.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is the Government of India’s flagship crop insurance programme. Introduced from the Kharif 2016 season, the scheme aims to provide insurance protection to farmers against specified crop losses caused by natural risks.
One of PMFBY’s most notable features is the relatively low premium payable by farmers. For eligible foodgrain and oilseed crops, the maximum farmer premium is generally 2% of the sum insured for Kharif crops and 1.5% for Rabi crops. For annual commercial and horticultural crops, it is generally 5%, or the actuarial rate where that is lower.
This guide explains PMFBY benefits, eligibility, premium rates, crop coverage, documents, online application, claim procedures and other important information farmers should understand before purchasing crop insurance.
What Is Pradhan Mantri Fasal Bima Yojana?
Pradhan Mantri Fasal Bima Yojana, commonly abbreviated as PMFBY, is a crop insurance scheme administered by the Ministry of Agriculture & Farmers Welfare, Government of India.
It was introduced from the Kharif 2016 season to provide farmers with insurance protection against specified crop risks.
Unlike a direct income-support scheme, PMFBY is an insurance programme. A farmer does not receive a fixed payment simply by enrolling. A claim becomes payable when an insured loss occurs and the applicable conditions for assessment and settlement are satisfied.
Participation is voluntary for farmers. States and Union Territories also decide whether to implement the programme based on their circumstances.
PMFBY Scheme: Key Details
| Particular | Details |
|---|---|
| Scheme | Pradhan Mantri Fasal Bima Yojana |
| Short Name | PMFBY |
| Launched | Kharif 2016 |
| Administered By | Ministry of Agriculture & Farmers Welfare |
| Scheme Type | Crop Insurance |
| Kharif Farmer Premium | Up to 2% for covered foodgrain/oilseed crops |
| Rabi Farmer Premium | Up to 1.5% for covered foodgrain/oilseed crops |
| Commercial/Horticultural Crops | Up to 5% for eligible annual crops |
| Participation | Voluntary for farmers |
| Main Purpose | Financial protection against notified crop risks |
| Official Website | pmfby.gov.in |
Farmers should remember that implementation, notified crops, insurance companies, deadlines and other operational details can differ by state and crop season.
Objectives of PMFBY
Agriculture involves substantial financial investment before a farmer earns income from a harvest. Farmers may spend money on seeds, fertilisers, pesticides, irrigation, labour, machinery and other inputs.
A major crop loss can therefore affect not only the current harvest but also the farmer’s ability to finance the next cultivation cycle.
PMFBY aims to create a structured insurance mechanism against specified agricultural risks.
Its broader objectives include providing financial support following eligible crop losses, helping stabilise farmers’ income after insured events, encouraging continued agricultural production and supporting risk management in farming.
Which Crops Are Covered Under PMFBY?
The official PMFBY information identifies three broad categories of crops for coverage:
1. Food Crops
This category includes eligible:
- Cereals
- Millets
- Pulses
2. Oilseeds
Notified oilseed crops can be covered under the scheme.
3. Commercial and Horticultural Crops
Notified annual commercial and annual horticultural crops may also be insured.
However, this does not mean that every crop grown anywhere in India is automatically covered.
The crop must be notified for the relevant area and season by the appropriate authority. Farmers should therefore check the current state notification before assuming that their crop qualifies.
PMFBY Premium Rates
The premium structure is one of the most searched aspects of Pradhan Mantri Fasal Bima Yojana.
The maximum farmer premium for standard coverage is generally:
| Crop/Season | Maximum Premium Payable by Farmer |
|---|---|
| Kharif foodgrain and oilseed crops | 2% of Sum Insured |
| Rabi foodgrain and oilseed crops | 1.5% of Sum Insured |
| Annual commercial/horticultural crops | 5% of Sum Insured |
The applicable rule is the prescribed farmer rate or the actuarial premium rate, whichever is lower.
Simple PMFBY Premium Example
Suppose a notified Kharif crop has a sum insured of ₹50,000 per hectare.
At a 2% farmer premium:
₹50,000 × 2% = ₹1,000
The farmer’s premium would therefore be ₹1,000 in this simplified example, assuming the actuarial rate is not lower.
For a Rabi foodgrain crop with a ₹50,000 sum insured, 1.5% would equal:
₹50,000 × 1.5% = ₹750
Actual premiums and coverage should always be verified through the official portal and applicable state notification.
What Is the Sum Insured Under PMFBY?
The sum insured is important because it forms the basis of insurance coverage.
According to the official PMFBY framework, the sum insured per hectare is linked to the applicable Scale of Finance as determined and notified through the prescribed process.
For an individual farmer, the insured amount generally depends on:
Sum Insured per hectare × Area of the notified crop insured
For example, if the notified sum insured were ₹40,000 per hectare and a farmer insured two hectares, the total sum insured would be ₹80,000.
This is only an illustration. Farmers should use the actual notified figures for their crop and area.
What Risks Are Covered Under PMFBY?
Crop insurance coverage is governed by applicable guidelines and notifications. Depending on the circumstances and coverage offered, PMFBY can address losses at different stages of the crop cycle.
Prevented Sowing
Adverse seasonal conditions may sometimes prevent farmers from sowing or planting an insured crop despite preparing for cultivation.
Specified prevented-sowing situations may qualify for coverage when applicable conditions are satisfied.
Standing Crop Losses
Standing crops can be affected by non-preventable risks such as drought, dry spells, floods, inundation, cyclones, storms, pests and diseases.
Coverage is subject to the risks and conditions specified under the applicable scheme notification.
Post-Harvest Losses
Certain specified post-harvest losses may also be covered for a prescribed period and under defined conditions.
Farmers should check the current operational guidelines because post-harvest protection is not an unlimited extension of regular crop insurance.
Localised Calamities
Certain localised events can cause serious damage to an individual farm or small area even when the wider region remains unaffected.
Specified localised calamities may be covered according to the applicable PMFBY provisions and assessment process.
Who Is Eligible for PMFBY?
Farmers growing notified crops in notified areas can check their eligibility for PMFBY.
Eligibility is linked to the crop, location, cultivation status, applicable notification and other scheme conditions.
An important feature of the present framework is that PMFBY is voluntary for farmers.
Farmers should check four things before enrolling:
- Whether their state or Union Territory is implementing PMFBY for that season.
- Whether their area is notified.
- Whether the crop being cultivated is notified.
- Whether enrollment is still open.
Meeting general farmer eligibility alone does not guarantee that a particular crop can be insured in every location.
Documents Required for PMFBY
Document requirements can vary depending on the state, enrollment channel and farmer’s circumstances.
Farmers should generally be prepared with information or records relating to:
- Aadhaar/accepted identity information
- Bank account details
- Land records
- Crop and sowing information
- Cultivated area
- Mobile number
- Applicable tenancy/sharecropping or cultivation records
- Other documents prescribed by the relevant authority
Details entered in the application should match official records.
An incorrect bank account number, land area or crop declaration can cause complications during verification or claim processing.
How to Apply for PMFBY Online
Farmers can access PMFBY’s digital services through the official National Crop Insurance Portal.
Step 1: Visit the Official PMFBY Website
Open the official PMFBY portal:
pmfby.gov.in
Always check the domain carefully before entering Aadhaar, bank or land information.
Step 2: Access Farmer Services
Use the farmer section of the portal to access the available enrollment and insurance-management facilities.
The current PMFBY digital ecosystem also includes a Farmer App for applying for and managing crop insurance.
Step 3: Enter Farmer Information
Provide the required personal and agricultural information.
This can include details relating to identity, location, bank account, crop, land and cultivated area.
Step 4: Select the Crop and Season
Choose the correct notified crop and agricultural season.
Do not select a crop simply because it appears similar to the one being cultivated.
Step 5: Verify the Insurance Details
Check the sum insured, farmer premium and other policy information before submitting the application.
Step 6: Pay the Applicable Premium
Complete the prescribed premium payment using an available authorised channel.
Step 7: Save the Application Details
After completing enrollment, save the acknowledgement, application number, receipt or policy information.
These details can be useful when checking the application and reporting a loss.
How to Calculate PMFBY Premium Online
Farmers do not need to estimate their premium manually.
The official PMFBY platform provides digital tools and information for crop insurance services.
Visit the official PMFBY portal, select the applicable location, season and crop information, and check the available premium/insurance details.
External resource: Pradhan Mantri Fasal Bima Yojana – pmfby.gov.in
Using the official portal is preferable to relying on an unofficial calculator because crop notifications and sums insured can vary by location and season.
How to Check PMFBY Application Status
Farmers who have already enrolled can use the Application Status facility on the PMFBY portal.
Keep your application or policy information ready before checking.
If the status shows an error, first confirm that the information entered matches your acknowledgement.
Farmers should avoid submitting duplicate applications merely because an existing application is taking time to update.
What to Do When an Insured Crop Is Damaged
Timely reporting is particularly important for categories of losses that require individual farmer intimation.
If an insured crop is damaged:
- Document the damage where possible.
- Keep your PMFBY application/policy information ready.
- Contact the authorised insurance or government channel promptly.
- Provide accurate crop and location details.
- Follow the applicable loss-reporting deadline.
Do not delay reporting while waiting to see whether the crop improves if the applicable rules require prompt notification.
The PMFBY portal provides access to digital tools supporting insurance management and crop-loss assessment.
How Are PMFBY Claims Calculated?
A PMFBY claim is not automatically equal to the amount a farmer believes was lost.
Claim calculation depends on the type of loss and the assessment mechanism prescribed under the scheme.
For wider yield-based losses, crop-yield information and the applicable insurance methodology can play an important role. Different procedures apply to specified localised, prevented-sowing and post-harvest events.
This is why farmers should distinguish between:
Sum insured: the amount of insurance coverage associated with the insured crop.
Premium: the amount payable for obtaining the insurance.
Claim: the amount determined as payable after an eligible insured loss according to applicable rules.
The three figures are not necessarily the same.
Technology Used in PMFBY
PMFBY has increasingly incorporated technology into crop insurance administration.
The official portal currently highlights several digital systems, including the Farmer App, Crop Loss Assessment Platform (CLAP), Weather Information Network and Data System (WINDS) and Yield Estimation System Based on Technology (YES-TECH).
These systems are intended to support areas such as insurance administration, crop-loss assessment, weather information and yield estimation.
The government also approved a Fund for Innovation and Technology (FIAT) with a corpus of ₹824.77 crore as part of efforts to expand technology use in PMFBY and RWBCIS.
Technology can improve transparency and efficiency, but farmers still need to ensure that their crop, land and banking information is accurate.
Important PMFBY Points Farmers Should Remember
Do not assume that enrollment from the previous season automatically means the same crop and area will have identical conditions in the next season.
State participation, notified crops, insurance companies, enrollment deadlines and other details can change.
Before purchasing insurance, verify the current notification.
After enrolling, preserve your application and payment records.
If crop damage occurs, follow the official reporting procedure within the applicable time limit.
Most importantly, use government and authorised channels instead of relying on WhatsApp forwards or websites promising guaranteed claims.
PMFBY and myScheme
Farmers can also find information about Pradhan Mantri Fasal Bima Yojana through the Government of India’s myScheme platform.
myScheme is a national scheme-discovery platform that helps citizens explore government programmes and understand their benefits, eligibility and application procedures.
External resource: myScheme – myscheme.gov.in
For actual crop-insurance services and current operational information, farmers should use the official PMFBY portal and applicable state channels.
Frequently Asked Questions
What is PMFBY?
PMFBY stands for Pradhan Mantri Fasal Bima Yojana, a Government of India crop insurance programme introduced from the Kharif 2016 season.
What is the PMFBY premium for Kharif crops?
For notified Kharif foodgrain and oilseed crops, the maximum premium payable by farmers is generally 2% of the sum insured or the actuarial premium rate, whichever is lower.
What is the premium for Rabi crops?
For notified Rabi foodgrain and oilseed crops, the maximum farmer premium is generally 1.5% of the sum insured or the actuarial rate, whichever is lower.
What is the PMFBY premium for commercial crops?
For notified annual commercial and annual horticultural crops, the maximum farmer premium is generally 5% of the sum insured or the actuarial rate, whichever is lower.
Is PMFBY compulsory?
No. Participation in PMFBY is voluntary for farmers under the current framework.
Are all crops covered?
No. Coverage depends on the crops and areas notified for the applicable season.
Where can I apply for PMFBY?
Farmers can access crop-insurance services through the official National Crop Insurance Portal at pmfby.gov.in and other authorised enrollment channels available in their area.
Can I check PMFBY status online?
Yes. The official PMFBY portal provides facilities for checking application-related information.
Does crop insurance guarantee a claim after every crop loss?
No. A claim is payable only when the loss falls within applicable coverage and the prescribed assessment and claim conditions are satisfied.
Conclusion
The Pradhan Mantri Fasal Bima Yojana (PMFBY) provides an important financial risk-management mechanism for Indian farmers. By keeping the farmer’s share of premium relatively low—generally up to 2% for notified Kharif foodgrain and oilseed crops, 1.5% for equivalent Rabi crops and 5% for eligible annual commercial and horticultural crops—the scheme seeks to make crop insurance more accessible.
However, farmers should not treat PMFBY as guaranteed compensation for every crop loss. Eligibility and claims depend on notified crops, notified areas, insured risks, state participation and applicable assessment procedures.
Before enrolling, farmers should verify the latest crop notification, premium, sum insured and deadline. After enrollment, they should preserve their insurance records and report eligible crop damage through authorised channels within the prescribed period.
For the latest information, farmers should use the official PMFBY National Crop Insurance Portal at pmfby.gov.in and Government of India resources rather than relying on unofficial websites or social-media messages.