The Central Government will release ₹3,200 crore as the first installment of crop insurance under the Pradhan Mantri Fasal Bima Yojana (PMFBY) to nearly 30 lakh farmers affected by natural disasters, Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan announced on Monday.
This financial support is part of a larger ₹11,200 crore insurance payout planned under the scheme, with an additional ₹8,000 crore to be disbursed in a later phase.
Sharing the update on X (formerly Twitter), the minister assured farmers that those who do not receive the first installment today should not worry, as more funds are on the way.
Chouhan emphasized the government’s commitment to timely payments. He warned that insurance companies delaying compensation beyond the stipulated time will be penalized with 12% interest, which will be credited directly to farmers’ accounts.
“When natural disasters strike, it’s not just crops that are destroyed—farmers’ lives are shattered too. PMFBY has become a lifeline for such farmers,” he said in a video posted on X.
Encouraging farmers to report any grievances regarding the scheme, Chouhan added,
“Serving you is my worship of God. If you have any complaints about the crop insurance scheme, please let me know. We are always with you.”
About the Scheme:
- Launched in 2016, the Pradhan Mantri Fasal Bima Yojana offers financial protection to farmers against crop losses due to natural calamities like floods, droughts, hailstorms, cyclones, unseasonal rains, and pest attacks.
- The scheme marked its 9th anniversary on February 18, 2025.
- In January 2025, the Union Cabinet approved its extension until 2025-26, with a total allocation of ₹69,515.71 crore.
- The scheme is voluntary, but has seen rising popularity among non-loanee farmers, who accounted for 55% of total coverage in 2023–24.
The Ministry of Agriculture and Farmers Welfare reaffirmed that PMFBY remains a critical risk mitigation tool, ensuring income stability and encouraging innovation and resilience in Indian agriculture.
