Pradhan Mantri Fasal Bima Yojana

  PMFBY, launched in 2016, is designed to reduce the burden of crop insurance on farmers. It replaced the National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).

 PMFBY- is in line with One Nation – One Scheme theme. 

Key Features 

 PMFBY fixes a uniform premium of 2 per cent of the value of sum insured to be paid by farmers for all kharif crops.

 1.5 per cent of sum insured for all rabi crops, 5 per cent of sum insured for annual commercial and horticultural crops or actuarial rate, whichever is less.

 This scheme optional for both loanee and non-loanee farmers. 

Objective of the Scheme

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims for supporting sustainable production in agriculture sector.

a) To provide compensation to farmers suffering crop loss/damage arising out of unforeseen events. 

b) To stabilize the income of farmers to ensure their continuance in farming. 

c) To encourage farmers to adopt innovative and modern agricultural practices.

d) To ensure flow of credit to the agriculture sector; which will attribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.