Farmers embrace crop insurance scheme as PMFBY sees 27% rise in enrolment

Applications under the scheme have also witnessed a jump by 33.4% and 41% year-on-year during 2021-22 and 2022-23, respectively. Notably, 42% of total farmers insured under the scheme in FY 2023-24 are non-loanee farmers.

Enrolment under Pradhan Mantri Fasal Bima Yojana (PMFBY) has surged by 27% in the ongoing fiscal year, as per a statement by the Ministry of Agriculture & Farmers Welfare. The scheme, launched in 2016, provides financial protection to farmers by insuring their crops against losses or damages caused by unforeseen events.

The released data reveals that 56.8 crore farmers have enrolled in the scheme over the past eight years, with more than 23.22 crore farmers having received claims. During the same period, nearly Rs. 31,139 crore were paid by farmers as their share of premium, while claims amounting to Rs. 1,55,977 crore have been disbursed.

Applications under the scheme have also witnessed a jump by 33.4% and 41% year-on-year during 2021-22 and 2022-23, respectively. Notably, 42% of total farmers insured under the scheme in FY 2023-24 are non-loanee farmers.

The scheme is regularly reviewed in consultation with stakeholders to address any operational challenges in its implementation. Some of the major improvements the scheme has undergone include making it voluntary for all farmers, compulsory use of at least 0.5% of the gross premium collected by insurance companies for Information, Education and Communication (IEC) activities; intensive use of technology; modification in financial sharing pattern from a 50:50 ratio between the centre and states in NER to 90:10; introduction of long term contracts lasting three years with insurance companies; and flexibility for states to choose risk cover as per their requirements.