Transforming Agricultural Insurance in India: A Comprehensive Exploration of the Pradhan Mantri Fasal Bima Yojana (PMFBY)

Navigating the maze of agricultural risks and insurance can be daunting for farmers, especially considering the weather conditions and disaster risks in a country as diverse as India. The Pradhan Mantri Fasal Bima Yojana (PMFBY) is an agricultural insurance scheme introduced by the Government of India, which marks a significant shift in the country’s approach to agricultural risk management. Aimed at providing affordable crop insurance to farmers, the scheme offers comprehensive coverage against a spectrum of disaster natural risks. This fact sheet encapsulates the scheme’s key aspects, including its departure from traditional crop insurance programs, especially regarding premium payments and subsidies, and the main success factors. The document also highlights the challenges associated with the scheme’s implementation and provides recommendations for better efficacy.