Enrollment under India's flagship crop insurance scheme, the Pradhan Mantri Fasal Bima Yojana (PMFBY), has witnessed a notable surge, with a 27% increase reported in the current fiscal year as per Ministry of Agriculture & Farmers Welfare report.
According to data released by the government on Sunday, around Rs. 500 have been disbursed as claims to farmers for every 100 rupees of premium paid under the PMFBY, underscoring its significance in providing financial assistance to agriculturists facing crop losses.
Over the past eight years since its inception, the PMFBY has enrolled a staggering 56.80 crore farmer applications, with more than 23.22 crore applicants receiving claims. During this period, farmers have contributed nearly Rs. 31,139 crore as their share of premium, against which claims totaling over Rs. 1,55,977 crore have been disbursed.
The PMFBY, launched in 2016, aims to shield farmers from crop loss or damage arising from unforeseen events, thereby stabilizing their incomes, particularly in seasons or areas hit by natural calamities.
Government data indicates a robust year-on-year growth in farmer applications, with a 33.4% increase in 2021-22, followed by a 41% surge in 2022-23. The current fiscal year has witnessed a 27% rise in farmer enrollment under the scheme. Notably, 42% of the total farmers insured in the fiscal year 2023-24 are non-loanee farmers, reflecting a wider adoption of the scheme.
The PMFBY is hailed as the third-largest insurance scheme globally in terms of premium. It is a demand-driven and voluntary scheme for both states and farmers. No state-wise allocation or release is made under the scheme, which falls under the Central Sector Scheme.
To enhance coverage and transparency, the government has implemented several measures, including increasing the tenure for selection of insurance companies to three years through a bidding process, introducing alternative risk models, and leveraging technology for faster claims settlement.
Regular monitoring and review of the scheme are conducted by the Department of Agriculture & Family Welfare, with efforts to ensure timely settlement of claims and the adoption of innovative technologies to streamline processes.
The revisions in the Operational Guidelines of the PMFBY aim to make the scheme more farmer-friendly, transparent, and accountable, ensuring that eligible benefits reach farmers promptly.
The surge in enrollment and the effective implementation of the PMFBY underscore the government's commitment to supporting farmers and mitigating agricultural risks in the country.
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