Over half of India’s population makes their living from agriculture, which is the backbone of the country’s economy. It is still very susceptible to other hazards, market swings, and the whims of nature, nevertheless. Preserving the farmers against natural disasters and guaranteeing their financial viability for the upcoming season are imperative. It is crucial to protect farmers from these threats in a nation where they are frequently referred to as “Annadata,” or the source of food. Consequently, the availability of crop insurance incentivizes farmers to reallocate input expenditures from crops with low yields and low volatility to those with higher risk. With this background in mind, the Prime Minister Fasal Bima Yojana (PMFBY) Scheme was launched in 2016. It offers farmers financial assistance and insurance coverage in the event that any of the notified crops fail due to pests, diseases, or natural disasters. This article explores the legal foundation of PMFBY and how well it works to solve the issues of the Indian agriculture industry.

In order to give farmers the financial stability they need to carry out their vital work, this expansive crop insurance program is intended to offer complete coverage against crop losses. This initiative is run by the Ministry of Agriculture, which is part of the Government of India’s Ministry of Agriculture and Farmers Welfare. A large segment of the farming population can access it, and it covers a wide range of crops.

Objectives of this scheme:

The purpose of this program is to guarantee farmers receive insurance coverage and financial assistance in the event that any of the notified crops fail due to diseases, insects, or natural disasters.
– To secure the livelihoods of farmers.
– To motivate farmers to use cutting-edge, contemporary agricultural methods.

Implementation of PMFBY:

The Ministry of Agriculture, the Indian government, and the Department of Agriculture and Farmers Welfare (DA & FW) oversee and manage this program. Committees for monitoring at the district level and coordinating at the state level are in charge of implementing the plan. The number of these committees that the government has established to oversee and run this program appropriately demonstrates how seriously it takes both the welfare of farmers and this program. To provide crop insurance services, insurance companies are chosen through a bidding process. Financial organizations such as banks assist farmers with enrollment and make sure premiums are paid on time.

Analysis of PMFBY and its efficiency:

All across India, this program has given farmers a safety net, allowing them to recover from crop losses and carry on with their farming, thereby strengthening their income. The number of farmers who are insured has also expanded dramatically. Because of the massive awareness campaign that the Indian government coordinated and involved a wide range of stakeholders in putting into action, there has been a noticeable increase in awareness levels. The program has also expedited the claim settlement procedure in an attempt to guarantee farmers receive their money on schedule. Crop damage assessment has become more accurate and faster because to the usage of technologies like smartphone applications and drones for remote sensing. From the perspective of farmers, the program still has several issues despite its many advantages, including the redeveloping insurance products to account for loss to agricultural commodities from both an independent variable and individual hazards and substantial subsidies. Even though the Indian government has implemented numerous comparable plans in the past, political parties have opposed them for their own political motives, despite the fact that the government has taken farmers’ problems extremely seriously. However, that is not the only issue; despite the implementation of numerous programs aimed at helping farmers, the number of farmer suicides has not decreased. According to a few studies and firsthand accounts from farmers, the program continues to cause farmers great dissatisfaction because individual and independent risks are not covered by it and compensation payments are delayed. Although the government has the best of intentions when it comes to this program, this isn’t the case for everyone, and as a result, we observe operational inefficiencies. Therefore, in addition to enacting strict laws and creating committees to hold them accountable, the government must increase the effectiveness of these programs by adding more cash crops, expediting the settlement of claims following a thorough assessment of each individual’s crop loss, and settling claims quickly. Distressed farmers can resolve concerns about the plan, the insurance terms, and claim payouts with the aid of a grievance-redressal system. Consequently, it is imperative that the government address these basic shortcomings and work out the imperfections in a plan intended to raise capital for the agriculturally struggling.


Enhancing access to agricultural loans to increase agricultural output, covering input costs for production, and protecting farmers from revenue losses are all made possible by an efficient crop insurance network. In terms of giving the Indian farming community complete risk coverage, the Pradhan Mantri Fasal Bima Yojana is a major step forward. This program represents the nation’s dedication to its farmers, who work incredibly hard to provide food for the country, and goes beyond being just an insurance policy. It can actually become the shield of protection it claims to be by improving its administrative procedures and evaluation techniques.

Contributed by- Sri Moukthika

O.P. Jindal Global University (LLB 2023-26)

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