Pradhan Mantri Fasal Bima Yojana Extended for Next Five Years
Chief Minister Dr. Mohan Yadav has decided to continue the Pradhan Mantri Fasal Bima Yojana (PMFBY) for the next five years under the ongoing “Farmer Welfare Year” initiative.
For the effective implementation of the scheme, an amount of ₹11,608.47 crore was approved during the Cabinet meeting chaired by the Chief Minister on 20 May.
The scheme is being implemented to provide financial assistance to farmers in case of crop losses caused by natural disasters.
Madhya Pradesh is among the leading states in implementing the scheme and utilizing technology for crop condition assessment and yield estimation.
During the financial year 2023-24, claims worth ₹961.68 crore were settled for 35.18 lakh farmer applications.
Similarly, in the year 2024-25, claims worth ₹275.86 crore were settled for 35.56 lakh farmer applications.
Farmers in the state have been receiving benefits under the Pradhan Mantri Fasal Bima Yojana since 2016. The scheme provides financial support to participating farmers in the event of crop damage or loss.
Farmers are required to pay a maximum premium of:
- 2% of the insured amount for Kharif crops
- 1.5% of the insured amount for Rabi crops
The difference between the premium payable by farmers and the actual insurance premium rate is treated as a premium subsidy, which is equally shared by the Central and State Governments.
The Central Government has fixed the maximum premium subsidy limit at:
- 25% for irrigated districts
- 30% for non-irrigated districts
Any premium amount exceeding these limits will be borne by the State Government.
In Madhya Pradesh, the compensation level has been fixed at 80%, and the same level will continue for all crops in the coming years.