Objective  

Features

• To offer financial assistance to farmers who experience crop losses. 
• To stabilize the income of farmers, ensuring they can continue their farming activities. 
• To promote the adoption of modern agricultural techniques. 
• To enhance the flow of credit to the agriculture sector, supporting food security and crop diversification.
• Promoting innovation & research of insurance and allied products so-as-to offer expanded choice to the farmers and the State Governments/UT Administrations.

• Launch date: 2016
• Ministry:  Ministry of Agriculture & Farmers Welfare
• Coverage of Crops
  • Food crops (Cereals, Millets, Pulses)
  • Oilseeds
  • Annual Commercial / Horticultural crops

Note: Scheme covers crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) will be conducted being a part of the General Crop Estimation Survey (GCES).

Risks Covered

• Yield Losses (Standing Crops on Notified Area Basis):
  • Natural Fire & Lightning
  • Storms, Cyclones, Hurricanes, Tornadoes
  • Floods, Inundation, Landslides
  • Drought, Dry Spells
  • Pests & Diseases
• Prevented Sowing (Notified Area Basis):
  • If adverse weather prevents sowing, insured farmers can claim up to 25% of the sum insured.
  • The sum insured is the amount that the insurance company pays to the policyholder in the case of an unpredictable event
• Post-Harvest Losses (Individual Farm Basis):
  • Covers up to 14 days after harvesting for crops left in cut and spread condition against cyclonic/unseasonal rains.
• Localized Calamities (Individual Farm Basis):
  • Covers hailstorms, landslides, and inundation affecting specific farms.
• Add on: States may consider providing add-on coverage for crop loss due to attack by wild animals wherever the risk is perceived to be substantial and is identifiable.
• Exclusions
  • War, riots, malicious damage, theft.
  • Grazing/destruction by domestic or wild animals.
  • Losses due to preventable risks.
  • Bundled or heaped harvested crops before threshing (for post-harvest losses).
• Annual Premium 
  • Kharif Crops: 2% of sum insured.
  • Rabi Crops: 1.5% of sum insured.
  • Annual Commercial/Horticultural Crops: 5% of sum insured.
  • The difference between premium and the rate of Insurance charges payable by farmers is provided as subsidy and shared equally by the Centre and State.
  • For North-Eastern States (90:10) from Kharif 2020
• Eligibility: All Farmer having insurable interest can be covered under these scheme  including sharecroppers and tenant farmers.
  • Earlier the scheme was mandatory for farmers availing crop loans/Kisan Credit Card loans for the notified crops and notified areas and optional for others.
  • However, the Scheme has now been made optional for all farmers w.e.f. Kharif 2020 season.
• Coverage is not provided for 100% of the crop value.
• PMFBY scheme is exempted from Goods and Service Tax.
• Implementing Agency: Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW) and the concerned State.

 Recent Technological Initiatives under the Scheme 

• Fund for Innovation and Technology (FIAT)
  • Corpus of ₹824.77 Crore to enhance technology adoption.
  • Supports YES-TECH, WINDS, and R&D studies.
• YES-TECH (Yield Estimation System using Technology)
  • Uses Remote Sensing Technology for crop yield estimation.
  • 30% weightage to technology-based yield estimates.
  • Implemented in 9 major states: Andhra Pradesh, Assam, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Karnataka.
  • Madhya Pradesh has adopted 100% technology-based yield estimation.
• WINDS (Weather Information and Network Data Systems)
  • Establishes Automatic Weather Stations (AWS) at block level and Automatic Rain Gauges (ARGs) at panchayat level.