Farmers paid premium of Rs 32,440 cr under PMFBY; over Rs 1.63 lakh cr worth claims cleared

New Delhi: Insurance claims of 1.63 lakh crore have been paid to farmers, as against the premium paid at Rs 32,440 crore under the Pradhan Mantri Fasal Bima Yojana (PMFBY), Parliament was informed on Friday.

"The Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced in the country from the Kharif 2016 season is voluntary for the states. All farmers growing notified crops in notified areas are eligible for coverage under the scheme voluntarily," Union Agriculture Minister Shivraj Singh Chouhan said in a written reply to the Rajya Sabha.

Under the scheme, a comprehensive risk coverage for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest stages of the crops at a very reasonable premium for the farmers is being provided.

"The PMFBY is successfully fulfilling the objectives and targets of the scheme especially in natural calamity hit seasons/years/areas," he said.

Due to various initiatives taken under the scheme, the minister highlighted that the Gross Cropped Area (GCA) covered in 2023-24 has grown to 598 lakh hectares, as compared to 501 lakh hectares in 2022-23.

The number of farmers enrolled was 3.97 crore in 2023-24, as compared to 3.17 crore in 2022-23 with a growth of over 25 per cent. Hence, the coverage of area and farmers is at its highest level till date.

Recently, Jharkhand and Telangana have also decided to rejoin the scheme which is likely to further increase the coverage area and number of farmers enrolled.

"As against the premium of Rs 32,440 crore paid by farmers till date, claims of Rs 1,63,519 crore have been paid out. Therefore, 5 times more claims have been paid out, when compared to the premium paid by the farmers," Chouhan said.

Though the scheme is voluntary for the farmers, non-loanee farmers’ coverage has increased to 55 per cent of the total coverage under the scheme during 2023-24, which shows the voluntary acceptability/popularity of the scheme.