← Concept Library · Economy
Economy GS 3 In the news 9 times

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Launched on February 18, 2016, PMFBY is India's flagship crop insurance scheme replacing the earlier National Agricultural Insurance Scheme (NAIS) and Modified NAIS. It provides comprehensive insurance coverage against crop failure due to natural calamities, pests, and diseases. Premium rates are fixed at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticultural and commercial crops, with the balance premium shared between the central and state governments. The scheme uses technology including satellite imagery, drones, and smartphone-based crop cutting experiments for faster claims assessment.

Key details
  • Launched: February 18, 2016; replaced NAIS and MNAIS
  • Farmer premium: 2% (Kharif), 1.5% (Rabi), 5% (horticulture/commercial)
  • No capping on government subsidy — full claim amount payable to farmers
  • Scheme made voluntary from Kharif 2020 (previously compulsory for loanee farmers)
  • Weather-Based Crop Insurance Scheme (WBCIS) operates as a complementary scheme using weather parameters as proxy for crop yields
  • Claim settlement target: within 2 months of crop cutting data submission
In the news

Tracked since February 10, 2026 · last seen May 31, 2026 · updates as the daily brief publishes

Related concepts
See it in today’s brief. Daily current affairs with every static concept explained in place.
Read the daily brief