What happens if I miss the enrollment deadline?

Unfortunately, you can’t claim any benefits unless you’re enrolled before the last date. Timely registration is crucial.

Is there any premium subsidy for small farmers?

Yes, a large portion of the premium is subsidised by the government—especially for marginal and small-scale farmers.

Can I claim insurance if my crop failed due to poor seeds?

No, the scheme usually covers natural calamities, not crop failure due to seed quality. That may fall under other schemes.

Do I need a land ownership certificate to apply?

Either land ownership or lease documents are needed. Without proof of cultivation, claims can be rejected.

Can farmers from all states apply under the same scheme?

It depends. Pradhan Mantri Fasal Bima Yojana (PMFBY) is nationwide, but states may opt in or out annually.

Can farmers from all states apply under the same scheme?

It depends. Pradhan Mantri Fasal Bima Yojana (PMFBY) is nationwide, but states may opt in or out annually.

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Cabinet Approves ₹69,515 Crore Outlay to Extend Crop Insurance Schemes

Komal Bajpai

Author

Updated: 28-01-2025 at 7:39 AM

Farmers of India got a major relief from this new announcement of the cabinet as the Indian government has decided to continue with its crop insurance schemes up to 2025-26. Thus, this decision is rooted in the government’s policy measures to protect farmers against natural disasters and affordable input for agricultural development.

What Are The Crop Insurance Schemes?

The government has Pradhan Mantri Fasal Bima Yojana (PMFBY) and RWBCIS that help farmers get insured from any loss caused by natural calamities. They mainly target minimising the monetary losses which farmers are exposed to, especially during adverse weather conditions. Two crop insurance schemes in India namely Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) have been taken up to 2025-26.

Prime Minister Fasal Bima Yojana (PMFBY) was launched during the Kharif Season in 2016 and is a yield-based insurance scheme. Within this scheme, the claimed amount is based on the difference between the actual attended yield and the threshold yield, and then the compensation is made upon a lack of performance of the threshold yield amount.

RWBCIS is a weather-based crop insurance scheme which was simultaneously rolled out. It provides farmers with calculated claims based on weather indices including rainfall and temperature.

The main difference which separates the two is how they are claimed. While PMFBY aims at Yield losses, RWBCIS works based on the weather to quantify the losses and grant compensation.

Also Read: Union Home Minister Shri Amit Shah Inaugurates 10,000 New M-PACS Along with Dairy and Fisheries Cooperatives

What Are The Key Approvals Given By The Cabinet For The Crop Insurance Schemes?

There are three major approvals given by the union cabinet for the benefit of the crop insurance schemes, such as:-

₹69,515 Crore Outlay for Crop Insurance.

The Cabinet has cleared ₹69,515.71 crore to carry forward these government schemes from 2021-22 to 2025-26. This fund shall cater for loss-making crops due to non-preventable natural disasters within India.

The establishment of a new global Fund for Innovation and Technology (FIAT).

₹824 crore new fund has been created for the latest technology adoption for better scheme implementation. This should improve resource transparency, rationalisation of claims clearing and introduction of YES-TECH and WINDS for faster and more accurate assessments.

₹3,850 Crore for Subsidy on Silent and Affordable DAP Fertiliser. The government wanted to make Di-Ammonium Phosphate (DAP) fertiliser cheaper so the Cabinet granted a special one-time allowance of ₹3,850 crore. DAP fertiliser has been sold at ₹1,350 per 50 kg bag and farmers can still use it even though international costs have gone up.

Also Read: Farmer Registry: Mandatory For PM Kisan Samman Nidhi Benefits

List Of States Benefitting From The Schemes

In today’s time, only nine states, including Uttar Pradesh, Haryana, Maharashtra, Tamil Nadu and Karnataka, have adopted these sarkari schemes. The funding pattern for Northeast and Himalayan states is 90:10 and in other states, it is equal to 50:50.

Focus On Marginal Farmers

The schemes are mainly focused on marginal farmers, 88% of the farm insurance users belong to the low-income group. Moreover, 57% of insurer farmers belong to OBC, SC & ST categories, including all sections of farmers.

Reasons For Implementation Of These Measures

Crop insurance schemes safeguard the farmer against pecuniary risks and coupled with an operating cost of affordable fertiliser a farmer can continue farming without being crippled by livestock prices. All these help in stabilising agriculture and rural growth.

Also Read: Bihar Rajya Fasal Sahayata Yojana - Crop Insurance Scheme

Conclusion

It is evident from the cabinet's recent decisions to extend crop insurance schemes and to give affordable fertilisers, that the government wants to ensure better conditions for farmers. These measures are in a way that helps to support the agricultural sector by using technologies and providing financial assistance.

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