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Fasal Bima Yojana: Preserving Indian Agriculture’s Future

The Fasal Bima Yojana, which was introduced in 2016, sought to alleviate a significant financial vulnerability that Indian farmers faced as a result of erratic weather patterns and crop losses. This article explores the potential of the system to improve the stability and security of millions of Indian farmers' lives by examining its goals, design, recent accomplishments, and current difficulties.

Farmers all around India can enroll in the government-sponsored FBY crop insurance program. It seeks to:

  • Offer monetary security: Provide farmers with compensation for agricultural losses brought on by unfavorable weather conditions such as hailstorms, floods, droughts, and insect infestations.

  • Lessen the cost: reduce the financial burden of crop failures, shielding farmers from debt traps and maintaining their financial security.

  • Promote taking chances: The program incentivizes farmers to embrace new technology and invest in improved agricultural practices by reducing risks.

Crucial Elements of FBY:

  • Coverage of Multiple Crops: A variety of crops are included in the program, such as cereals, pulses, oilseeds, fruits, vegetables, and commercial crops.

  • Premium Payment: Depending on the selected crop and total insured, farmers pay a subsidized premium. A large amount of the premium expense is borne by the government.

  • Claim Settlement: Farmers get reimbursement depending on the amount insured and the level of damage in the event that crop loss exceeds a pre-determined threshold.

  • Technology Integration: To reduce claim disputes, crop losses are objectively assessed using satellite photography and remote sensing.

Achievements for FBY:

Since its founding, FBY has advanced significantly:

  • Increased Participation: During the 2022–2023 Kharif season, almost 5.5 crore farmers took part in the initiative, demonstrating its increasing popularity.

  • Claims Paid: Since the program's launch, farmers have received over ₹1.38 lakh crore in claims payments, offering much-needed financial respite.

  • Decreased Financial Burden: Research indicates that FBY has aided in lowering farmers' debt loads and enhancing their capacity for handling money.

  • Technological Advancements: By integrating technology, fraudulent claims have decreased and claim settlement procedures have been expedited.

Effect of FBY:

FBY has an effect that goes beyond numbers:

  • Peace of mind: Farmers are more likely to try out novel farming methods and spend money on higher-quality inputs when they are confident in their financial security, which might result in higher yields.

  • Better Risk Management: With the help of the program, farmers are better equipped to take well-informed decisions and control agricultural hazards.

  • Decreased Distress: The financial stability that FBY offers keeps farmers from taking their own lives and gives their family a more respectable way of living.


  • You must be a cultivator or sharecropper on the insured land.

  • You must have a valid and authenticated land ownership certificate or a valid land tenancy agreement.

  • You must apply for insurance coverage within the prescribed time frame, which is generally within 2 weeks of the start of the sowing season.

  • You must not have received any compensation for the same crop loss from any other source.


  • Financial protection: In case of crop loss due to covered events like drought, flood, excessive rainfall, or pest attacks, you receive a claim amount based on the insured sum and the extent of the loss.

  • Peace of mind: Knowing you have financial protection against crop failure allows you to focus on farming activities without worrying about potential losses.

  • Early claim settlement: The scheme aims for prompt claim settlement to help farmers recover and invest in the next season.

  • Reduced dependence on loans: With financial protection under PMFBY, you might be less reliant on high-interest loans in case of crop failure.

Applying for PMFBY:

  • Contact your local agriculture department or bank: They will guide you through the application process and provide necessary information.

  • Submit required documents: This usually includes land ownership documents, aadhaar card, bank account details, and crop details.

  • Pay the premium: The premium is calculated based on the insured sum, crop type, and season.

  • Track your policy: You can access your policy details and claim progress online through the PMFBY portal.

Obstacles of  FBY

Notwithstanding its successes, FBY still confronts obstacles:

  • Low Awareness: In order to maintain larger involvement, it is imperative that small and marginal farmers in distant locations be reached.

  • Prompt Claim Settlement: The efficacy of the program and farmer confidence may be impacted by delays in claim settlement.

  • Crop Coverage Gaps: Increasing the program's scope to include new crops and take into account local demands unique to a certain crop is crucial.

  • Financial viability: Careful premium structure and effective claim procedures are necessary to guarantee the scheme's long-term financial viability.

The future success of FBY is dependent upon:

  • Enhanced Outreach: Increasing awareness and promoting broader engagement through the use of digital platforms, self-help groups, and local networks.

  • Simplified Claim Procedures: Making use of technology to reduce delays and hasten the settlement of claims.

  • Constant Improvement: Assessing and revising the plan on a regular basis in response to input from farmers and other stakeholders.

  • Financial Stability: In order to guarantee the long-term viability of the plan, creative finance methods and public-private partnerships should be investigated.

An important step in ensuring the livelihoods of Indian farmers is the implementation of the Fasal Bima Yojana. The program has the ability to empower farmers, reduce agricultural risks, and contribute to a more stable and successful agricultural sector in India by addressing current issues and building on its achievements. Ensuring the efficacy and accessibility of FBY would be crucial in creating a better future for India's agricultural community as it works towards food security and farmer welfare.


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