Pradhan Mantri Fasal Bima Yojana enrolments highest in 6 years, shows data

After a lull, the government’s flagship crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), seems to have picked up pace again with farmer enrolment touching a high of 25 million in the just-concluded kharif season.

Of this, almost 44.5 per cent (or 11.1 million) are farmers, who have not taken a loan. The total enrolment is the highest since 2018, data showed. In the previous kharif season, around 20.4 million farmers opted for PMFBY, of which, around 42 per cent were non-loanees. A rise in the number of non-loanee farmers under PMFBY is an indicator of voluntary acceptance of the scheme.

The figures were disclosed at a programme to announce the launch of three important digital initiatives of the ministry of agriculture and along with saturation of kisan credit cards (KCC). At the event, PMFBY chief executive officer (CEO) Ritesh Chauhan said he estimated that in the fiscal year 2023-24, around 37.5-40 million farmers would enrol under the scheme. Of this, around 42-45 per cent could be non-loanee farmers.

Chauhan also said that in 2023-24, around 57.5-60 million hectares of land will come under PMFBY. This is more than 49.7 million hectares compared to 2022-23.

He said that due to relentless efforts of the agriculture ministry, the actuarial premium rates for the 2023-25 insurance cycle is around 32 per cent lower than 2022-21.

It is leading to a savings of around Rs 10,580 crore for the government exchequer.

Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar were also present at the event.

Tomar said the government will strive to bring the 13-15 million PM-KISAN beneficiaries under the KCC net through a special drive starting next month.

Under PMFBY, the premium is determined through bidding. However, farmers have to pay a maximum of 2 per cent of the sum insured for kharif crops. It is 1.5 per cent for rabi food and oilseed crops and 5 per cent for commercial or horticultural crops.

The balance of actuarial or bidded premium is shared by the central and state governments on a 50:50 basis. It is 90:10 basis in case of Northeastern states, according to the provisions of the scheme.

The premium rate of crops depends on the risk associated with them.

Total liability of a state depends on actuarial or bidded premium rate, sum insured for crops, area insured and the number of crops notified by the states.

In February 2020, more than three years after it was launched by Prime Minister Narendra Modi, the Union Cabinet decided to make the PMFBY optional for loanee farmers.