Pradhan Mantri Fasal Bima Yojna (PMFBY)
Crop insurance at 1.5–5% premium · farmers nationwide
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme that protects farmers against losses from natural disasters, pests, and diseases at very low premiums — just 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticulture; the government pays the rest. The scheme covers yield loss, prevented sowing, post-harvest losses, and localized hazards like hailstorms or floods. Apply at any participating bank, Common Service Centre, or online at pmfby.gov.in within 2 weeks of the sowing season start.
About This Scheme
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme that protects farmers against losses from natural disasters, pests, and diseases at very low premiums — just 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticulture; the government pays the rest. The scheme covers yield loss, prevented sowing, post-harvest losses, and localized hazards like hailstorms or floods. Apply at any participating bank, Common Service Centre, or online at pmfby.gov.in within 2 weeks of the sowing season start.
Full official description
Launched on 18th February 2016, "Pradhan Mantri Fasal Bima Yojana" is a crop insurance scheme by the Department of Agriculture, Cooperation and Farmers’ Welfare, Ministry of Agriculture. PMFBY aims to provide financial protection to farmers against crop loss due to natural disasters (hail, drought, famine), pests, and diseases. PMFBY provides crop insurance at a cost-effective premium to all Indian farmers. PMFBY is an affordable crop insurance product implemented through a network of insurance companies and banks. The scheme covers over 50 crore farmers and provides insurance coverage for over 50 different crops. Objectives
- To provide financial assistance and support to farmers suffering from crop damage or loss arising out of unforeseen events.
- To stabilise the income of farmers and ensure continuance in farming.
- To encourage the farmers to adopt modern and innovative agricultural practices.
- To ensure crop diversification, and credit-worthiness of the farmers, enhance growth and competitiveness of the agriculture sector and protect the farmers from production risks.
Benefits
- Very low farmer-paid premiums: 2% for Kharif, 1.5% for Rabi, 5% for annual commercial/horticulture crops
- Comprehensive coverage for yield losses due to natural disasters, pests, and diseases
- Prevented sowing coverage: up to 25% of sum insured if bad weather prevents planting
- Post-harvest loss coverage for up to 14 days after harvest (for crops left in field to dry)
- Localized hazard coverage on individual farm basis for hailstorms, landslides, and flooding
- Claims targeted to be processed within 2 months of harvest
💡 Why Startups Should Care
For agri-based startups or farmer-aggregator businesses, encouraging your farmer network to enroll in PMFBY reduces their financial exposure to crop failure — protecting your supply chain's reliability indirectly.
Who Can Apply (Eligibility)
- All farmers — including tenant farmers and sharecroppers — growing notified crops in notified areas are eligible
- Must have a valid land ownership certificate or land tenure agreement
- Must apply within the prescribed window (typically 2 weeks from start of sowing season)
- Must not have already received compensation from any other source for the same crop loss
- Premium must be paid on time to keep coverage active
Exclusions
- Applies only to notified areas — crop losses in non-notified areas are not covered
How to Apply
- Visit the official PMFBY website (pmfby.gov.in).
- Register with your farmer and crop details.
- Submit passport photo, passbook, identity proof, and address proof.
- Choose your notified crop and area for coverage.
- Pay the subsidized premium — claims are processed based on assessed crop loss.
Frequently Asked Questions
I'm a tenant farmer without formal land ownership documents. Can I still apply for crop insurance under PMFBY if I can prove I cultivate the land?
Yes, tenant farmers and sharecroppers can apply with a valid land tenure agreement. You must provide evidence of your cultivation rights through state-recognized documents or agreements.
My crops were damaged by unseasonal rains after harvesting while drying in the field. Does PMFBY cover such losses?
Coverage is available for up to 14 days post-harvest for crops kept in "cut & spread" condition in the field, specifically for damage from cyclonic/unseasonal rains. You must report the damage immediately.
What is the exact premium rate for Kharif paddy, and how is the government subsidy calculated?
Farmers pay 2% of the sum insured for Kharif food crops. The difference between the actuarial premium rate and farmer's share is jointly subsidized by Central and State governments equally.
If a drought prevents me from sowing crops despite preparation, what percentage of compensation can I claim?
You can claim up to 25% of the sum insured under prevented sowing coverage, provided the majority of farmers in your notified area were also prevented from sowing due to adverse conditions.
I farm in Himachal Pradesh. Do I need to pay any premium for my apple crop under PMFBY?
No, farmers in Himachal Pradesh, along with other North-Eastern states and Jammu & Kashmir, receive 100% premium subsidy from the government for all notified crops.
Can I claim compensation if my entire village faced crop damage from a landslide, but neighboring villages were unaffected?
Yes, PMFBY covers localized calamities like landslides on an individual farm basis, even if the damage is isolated to specific areas within the notified region.
How long after reporting crop damage should I expect to receive the claim amount?
PMFBY aims to process and settle claims within two months of harvest, provided all documentation is complete and damage assessment is finalized.
If I've taken a bank loan for farming, do I need to separately apply for PMFBY, or is it automatic?
For loanee farmers, coverage is compulsory but not automatic. You must ensure your bank has processed your PMFBY enrollment within the specified timeframe.
What happens if I'm unable to pay the premium online due to technical issues on the last date?
You can visit a nearby CSC or bank branch to submit your premium payment. Keep proof of your online payment attempt for any deadline-related disputes.
If I've already registered on the PMFBY portal last season, do I need to create a new registration for this season?
No, use your existing registration. However, you must submit a fresh application and premium payment for each season you want coverage.
I discovered pest damage in my field but couldn't document it immediately due to hospitalization. Will my claim be rejected?
Report the damage as soon as possible with medical documentation of your hospitalization. Each case is evaluated based on provided evidence and circumstances.
How can I ensure my claim isn't rejected due to wrong information if the CSC operator fills my form?
Always verify the entered details before final submission. Request a printed copy of your application form and keep the acknowledgment receipt with the application number.
If my crop loss assessment shows 60% damage but I'm not satisfied with the evaluation, what's the grievance process?
File an appeal through the PMFBY portal or submit a written complaint to your district agriculture officer within 7 days of assessment. Include evidence supporting your claim.
Does PMFBY cover damage from wild animals or fire caused by neighboring fields?
Natural fire is covered, but damage from wild animals isn't. For fire spreading from neighboring fields, you must provide evidence that it wasn't due to negligence.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Passport-sized photograph
- Passbook
- Identity proof (Aadhaar/PAN/Voter ID/Bank Passbook with photo/Kisan Photo Book/NREGA Job Card)
- Address proof