Government Allocates ₹12,200 Crore for 2026-27; More Than ₹2.06 Lakh Crore in Claims Paid Over the Last Decade
New Delhi: The Pradhan Mantri Fasal Bima Yojana (PMFBY) has emerged as a major component of India’s agricultural risk-management framework, providing affordable crop insurance against a wide range of natural and weather-related risks, according to a PIB Backgrounder released on August 29, 2026.
The scheme, which was launched on February 18, 2016, covers risks including drought, floods, cyclones, hailstorms, pest attacks, diseases, prevented sowing, localised calamities, waterlogging and specified post-harvest losses.
For 2026-27, the Union Government has allocated ₹12,200 crore for PMFBY, reflecting its continued focus on protecting farm incomes, strengthening farmers’ resilience and promoting climate-resilient agriculture.
Over 92 Crore Farmer Applications Insured
Since the scheme’s introduction in Kharif 2016 through Rabi 2025-26, more than 92.46 crore farmer applications have been insured under PMFBY.
During the same period, claims amounting to more than ₹2.06 lakh crore have been paid against over 26.33 crore farmer applications, providing financial support to farmers affected by crop losses.
The government says the scheme has increasingly relied on technology-driven systems to improve the accuracy, transparency and speed of crop-loss assessment and claim settlement.
Affordable Premium Structure
One of the key features of PMFBY is the capped premium contribution payable by farmers.
Farmers pay a maximum premium of:
- 2% of the sum insured for Kharif crops;
- 1.5% for Rabi foodgrain and oilseed crops;
- 5% for commercial and horticultural crops.
The balance premium is subsidised by the Central and State Governments. Generally, the subsidy is shared in a 50:50 ratio, while the Centre and States contribute 90:10 for farmers in the North-Eastern and Himalayan States/Union Territories, as applicable.
Protection Across Different Stages of Crop Cycle
PMFBY provides coverage at various stages of cultivation and harvesting.
The scheme provides area-based protection for standing crops against risks such as drought, inadequate rainfall, floods, waterlogging, cyclones, hailstorms, lightning, pests and diseases.
Farmers who have incurred expenditure but are unable to sow or plant crops because of adverse weather conditions may be eligible for claims of up to 25% of the insured sum, subject to scheme provisions.
The scheme also covers specified post-harvest losses. Crops that have been harvested and left in the field for drying are covered for up to 14 days against specified cyclonic and unseasonal rainfall events.
Localised calamities, including hailstorms, landslides, waterlogging, cloudbursts and natural fires, can also be covered at the individual farm level under prescribed conditions.
However, the scheme excludes certain risks, including war, nuclear risks, riots, theft and other preventable or specified excluded risks.
Coverage for Loanee and Non-Loanee Farmers
PMFBY covers eligible farmers, including tenant farmers and sharecroppers, subject to applicable eligibility requirements and documentation.
Non-loanee farmers can voluntarily enrol in the scheme. According to the PIB Backgrounder, an average of around 50% of farmers have enrolled voluntarily as non-loanee farmers over the last decade, indicating growing participation beyond compulsory or credit-linked insurance.
Loanee farmers who have eligible crop loans through banks or financial institutions have their applicable premium deducted through the lending institution, subject to the scheme’s provisions.
Since 2018, more than 1.44 crore tenant and sharecropper farmers have been enrolled across States and Union Territories.
Kharif 2026 Coverage Surpasses Previous Season
PMFBY is currently being implemented in 25 States and Union Territories during Kharif 2026.
The scheme has already crossed the previous year’s Kharif coverage levels. During Kharif 2025, around 229.77 lakh farmers covering 269.38 lakh hectares were insured.
By August 27, 2026, Kharif 2026 coverage had reached 241.38 lakh farmers and 278.12 lakh hectares, according to the government.
For Kharif 2025, claims worth ₹9,837.61 crore had already been paid to 60.89 lakh eligible farmers.
At the national level, 2024-25 recorded the highest enrolment to date, with more than 15.23 crore farmer applications, covering more than 4 crore farmers and over 623 lakh hectares.
States Returning to the National Crop Insurance Framework
The government has also highlighted the return of several major agricultural states to PMFBY.
Andhra Pradesh rejoined the scheme from Kharif 2022, while Jharkhand returned from Kharif 2024. West Bengal rejoined from Kharif 2026.
Bihar has decided to return to the national scheme and implement PMFBY from the Rabi 2026-27 season.
The government has attributed variations in enrolment in some States to changes in implementation models rather than a broad decline in farmer participation.
Enrolment Trends Across Major Agricultural States
The PIB Backgrounder records increases in farmer enrolment in several major agricultural States during Kharif 2025.
Uttar Pradesh registered a 35% increase, with insured farmers rising from 15.48 lakh to 20.84 lakh.
Haryana recorded a 20% increase, while Rajasthan registered a 19% rise. Madhya Pradesh recorded a 12% increase, reaching 26.80 lakh insured farmers.
In Chhattisgarh, farmer enrolment increased by 9% to 15.75 lakh, while Odisha recorded a 5% increase, taking the total to 24.92 lakh farmers.
Technology at the Centre of Crop Insurance Reform
The government is increasingly using digital technologies to improve the implementation of PMFBY.
The National Crop Insurance Portal (NCIP) supports digital farmer enrolment, subsidy management, coordination and information dissemination. It also facilitates claim calculation and electronic transfer of claim payments.
Integration of land records with the portal has enabled digital verification of insured areas. According to the PIB Backgrounder, approximately 85% of the insured area in the States where this integration is being implemented is now verified through integrated land records.
DigiClaim
The DigiClaim module, launched from Kharif 2022, enables transparent calculation and settlement of claims through NCIP.
Claims are processed through the portal and payments are made through the Public Financial Management System (PFMS).
More than ₹55,000 crore in claims has reportedly been calculated and paid through the digital platform since its introduction.
CCE-Agri App
The Crop Cutting Experiment (CCE)-Agri App enables digital capture and uploading of crop-yield data.
The data is used to determine actual yield for the relevant insurance unit, which forms the basis for calculating eligible claims arising from yield losses.
YES-TECH and WINDS Improve Crop and Weather Assessment
The Technology Based Yield Estimation System (YES-TECH) uses remote sensing and technology-based methodologies to estimate crop yields more accurately.
It was introduced for paddy and wheat during Kharif 2023 and for soybean during Kharif 2024. The initial minimum weight assigned to YES-TECH yield data was 30%, which has now been increased to 50% in some States.
The Weather Information Network and Data System (WINDS) uses Automatic Weather Stations and Automatic Rain Gauges to generate hyper-local weather information at block and Gram Panchayat levels.
The data can support weather-based crop insurance, crop-yield estimation, disaster management, weather forecasting and other parametric insurance products.
CROPSIC and Farmer Grievance Redressal
The government is also piloting CROPSIC, which uses geo-tagged photographs to monitor crop health within an insurance unit and explore image-based assessment of crop damage and yield.
For grievance redressal, the Krishi Rakshak Portal and Helpline (KRPH) provides farmers with a toll-free number, 14447, to register complaints and seek assistance.
The nationwide service was launched in January 2024. Since then, more than 26.12 lakh farmer grievances have reportedly been resolved, with a resolution rate of 99.66%, according to the PIB Backgrounder.
Other digital tools include the Learning Management System, the App for Intermediary Enrolment (AIDE) and the Crop Loss Assessment App (CLAP).
Weather-Based Insurance Complements PMFBY
Alongside PMFBY, the government implements the Restructured Weather Based Crop Insurance Scheme (RWBCIS).
Unlike conventional yield-based assessment, RWBCIS uses predefined weather parameters as a proxy for crop losses. These parameters may include rainfall, temperature, humidity and wind speed.
The scheme operates on an area-based approach within a defined Reference Unit Area. Payments are triggered when recorded weather conditions cross predetermined thresholds.
During Kharif 2026, RWBCIS covered 25.95 lakh farmer applications across 12.31 lakh hectares, with particular relevance for fruit, vegetable and horticultural crops.
Strengthening Climate Resilience in Agriculture
Over the past decade, PMFBY has evolved into a significant component of India’s agricultural risk-management system.
By combining affordable premiums with coverage across different stages of the crop cycle, the scheme aims to reduce the financial shock caused by climate-related disasters, adverse weather, pests and diseases.
The growing use of digital platforms such as NCIP, DigiClaim, CCE-Agri, CLAP, YES-TECH and WINDS is also intended to improve transparency, accuracy and speed in crop-loss assessment and claim settlement.
As Indian agriculture increasingly confronts climate variability and weather-related risks, crop insurance is expected to remain an important instrument for protecting farm incomes, supporting investment in agriculture and strengthening the resilience of rural livelihoods.
Source: Press Information Bureau, Government of India, PIB Backgrounder dated August 29, 2026.
