A failed crop can leave a farmer facing the loss of an entire season’s investment. The Pradhan Mantri Fasal Bima Yojana provides insurance against several notified risks, including drought, floods, cyclones, hailstorms, pests, diseases and certain post-harvest losses.
The scheme covers different stages of the crop cycle, from prevented sowing and widespread weather damage to specified losses after harvest. The government allocated ₹12,200 crore for PMFBY in 2026–27 as the scheme continues to cover farmers against weather and other agricultural risks.
Farmers should understand that insurance does not mean every crop loss automatically results in a payment. The crop, area, notified risks, insurance terms and assessment process determine whether a claim is payable.
This becomes more relevant as farmers face irregular rainfall, dry spells, floods and extreme weather. Crop insurance is one financial tool within a wider approach to managing climate-related farm risks.
Under PMFBY, the maximum farmer premium for Kharif foodgrain and oilseed crops is 2% of the sum insured. For Rabi foodgrain and oilseed crops, it is 1.5%, while commercial and horticultural crops carry a maximum farmer premium of 5%.
The remaining actuarial premium is subsidised by the Central and State governments. For most states, the subsidy is shared equally, while the Centre-State share for North-Eastern and Himalayan States is 90:10 under the scheme rules.
Farmers should check the notified crop and sum insured for their area before enrolling. The premium amount is linked to the insured crop and sum insured, so the actual amount payable can vary between crops and locations.
PMFBY is currently being implemented by 25 States and Union Territories for Kharif 2026. As of 27 August, the government reported 241.38 lakh insured farmer applications covering 278.12 lakh hectares for the season.
These figures show the scale of the programme, but coverage is not the same as a guaranteed claim. Farmers still need to provide correct information and meet the scheme’s conditions.
What crop losses can be covered?
PMFBY provides coverage against notified natural risks such as drought, floods, cyclones, hailstorms, pests and diseases. It also covers prevented or failed sowing, certain localized calamities and specified post-harvest losses.
The exact risks and crops notified can differ by state and season. Farmers should therefore check the notification applicable to their crop and area rather than assuming every possible loss is covered.
The scheme can cover widespread crop damage as well as certain localized events. Localized calamities can include events such as hailstorm, inundation and landslide at individual farm-plot level, subject to the scheme conditions.
Post-harvest protection also has specific conditions. The scheme provides cover for certain specified losses after harvesting, including damage from cyclones, cyclonic rains and unseasonal rainfall for crops kept in the field for drying, within the applicable period.
This distinction is important for farmers who suffer damage after harvesting. They should not assume that every post-harvest loss qualifies automatically.
Correct information is one of the most important parts of enrolment. PMFBY applications are checked against requirements such as insurable interest, land ownership or valid tenancy or sharecropping documents, actual insured area and the crop that was sown.
The farmer’s name must also match the Aadhaar record under the operational guidelines. Incorrect, incomplete or missing information can lead to an application being rejected by the insurer.
Tenant and sharecropper farmers are included under PMFBY where they meet the applicable documentation and eligibility requirements. The government reported that more than 1.44 crore such farmers had been enrolled cumulatively since 2018.
Farmers should keep copies or records of their insurance application, premium payment, land details and sowing information. These documents can be useful if there is a dispute about enrolment or a claim.
If an application is rejected because of missing documents, the guidelines provide a process for supplying the required information through the relevant enrolment channel.
What should farmers do after crop damage?
Farmers should report crop damage through the prescribed channel within the applicable time limit. The exact process can depend on the type of loss and the state-level implementation arrangements.
For individual or localized losses, farmers should not wait until harvesting to report serious damage. They should contact the agriculture department, insurer, bank or authorised channel and ask about the applicable reporting procedure.
The scheme has a dedicated grievance mechanism. The KrishiRakshak Portal and Helpline can be accessed through the toll-free number 14447. District and State-level grievance committees are also available under the operational guidelines.
Farmers should provide accurate information about the affected crop and land. Photographs or other records may also be useful for documenting the condition of the field, though the formal claim assessment follows the scheme’s prescribed procedures.
Technology now plays a larger role in assessing crop losses. The government says PMFBY uses systems including YES-TECH, which stands for Yield Estimation System Based on Technology, and WINDS, the Weather Information Network and Data System.
The scheme also uses digital platforms including the National Crop Insurance Portal, DigiClaim and the CCE Agri App. These systems are intended to improve the collection, processing and monitoring of crop insurance information.
Technology can be particularly useful when weather events affect large areas. Satellite data, weather information and other digital tools can provide additional evidence alongside field-level assessments.
Farmers should still retain their own records. Digital assessment does not remove the need for correct land, crop, sowing and insurance information.
Why does crop insurance matter as climate changes?
Climate change can increase the uncertainty farmers face from heat, drought, intense rainfall and changing rainfall patterns. Crop insurance cannot prevent these events, but it can provide financial support when a covered crop suffers an insured loss.
The government describes PMFBY as part of efforts to strengthen agricultural resilience against climate change and extreme weather. Since its launch in Kharif 2016 through Rabi 2025–26, more than 92.46 crore farmer applications had been insured and claims exceeding ₹2.06 lakh crore had been paid to more than 26.33 crore farmer applications.
For farmers, the practical step is to check whether their crop and village are notified under PMFBY, understand the premium and coverage, and keep all enrolment and land records accurate.
A crop insurance policy is useful only when the farmer understands what it covers and follows the required process after damage. As weather risks change, knowing those rules can be as important as paying the premium.
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