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

UPSC Exam Preparation: Topic of the Day – Pradhan Mantri Fasal Bima Yojana

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). Therefore, currently, Pradhan Mantri Fasal Bima Yojana is the only flagship scheme of the government for agricultural insurance in India.



  • Annual Commercial / Annual Horticultural crops, oilseeds and food crops (Cereals, Millets and Pulses) are covered under the scheme.
  • The scheme 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.
  • All the funds for the scheme come from the Krishi Kalyan Kosh.
  • The scheme covers localized calamities such as hailstorms, landslides etc; yield losses such as droughts, dry spells, pests, floods etc; and post-harvest losses against specific perils of unseasonal rains, cyclonic rains, cyclones etc.
  • However, the scheme does not cover perils such as war & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals
  • It is proposed by the scheme to use remote sensing technology, smart phones or drones to expedite the crop loss estimation.


Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by following ways:

  • By providing financial support to farmers who suffer crop loss/damage that arise out of unforeseen events.
  • By stabilizing farmers income to ensure that they continue their farming activities .
  • By encouraging the farmers to adopt modern agricultural practices and also make use of innovative agricultural practices.
  • Ensuring the flow of credit to the agriculture sector which contributes to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

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