Topic of the Day - Pradhan Mantri Fasal Bima Yojana (PMFBY)

The government of India in April 2016, launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) after scraping down the earlier insurance schemes viz. Modified National Agricultural Insurance Scheme (MNAIS), Weather-based Crop Insurance scheme and the National Agriculture Insurance Scheme (NAIS). 

This scheme unburdens the farmers of crop insurance which makes it an important topic when it comes to government welfare schemes for UPSC Syllabus under the General Studies Paper-2 section.

Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana is the flagship scheme of the government for agricultural insurance in India in line with the ONE NATION- ONE SCHEME theme.

  • Annual Commercial / Annual Horticultural crops, oilseeds and food crops (Cereals, Millets and Pulses) are covered under the scheme.
  • PMFBY is optional for the farmers who have not availed institutional credit, while all the farmers who have borrowed institutional loans from banks are covered under the scheme mandatorily.
  • The Krishi Kalyan Kosh funds the entire PMFBY scheme.

Candidates can know the detailed information about the Pradhan Mantri Fasal Bima Yojana on the Official Website (

What is covered under PMFBY?

The Pradhan Mantri Fasal Bima Yojana will cover the following cases under crop insurance:

  • Local natural calamities like landslides, hailstorms, etc.
  • Calamities leading to loss of yield like floods, dry spells, droughts, etc. Pest infestation that causes yield loss is also covered by PMFBY.
  • Losses occurred after harvesting crops can also be covered under this scheme. These circumstances may befall due to cyclones, unseasonal rains, cyclonic rains, etc.
  • Nevertheless, PMFBY does not provide any safety against the following circumstances:
    • Losses occurred due to war or similar hazardous activities.
    • Loss of yield due to the act of enmity or riots.
    • Yield destruction caused by domestic and/or wild animals
    • Contamination due to nuclear risks.
    • Malicious damage leading to yield carnage.
  • It is proposed by the scheme to use remote sensing technology, smartphones or drones to expedite the crop loss estimation.

PMFBY Objectives

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at providing support for the sustainable production of yield in the agricultural sector. PMFBY will achieve this by implementing the following:

  • Financial support will be provided to farmers in distress due to loss and damage of crops caused by unexpected calamities.
  • Making sure the income of farmers are stabilized in order for them to continue their farming activities.
  • Promoting farmers to adopt and use modern equipment and agricultural practices for efficient and high yield farming.
  • Ensuring the flow of credit to the agriculture sector which contributes to food security, crop diversification and enhancing growth and competitiveness of the agriculture sector besides protecting farmers from production risks.

Pradhan Mantri Fasal Bima Yojana (PMFBY):- Download PDF Here

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