West Bengal, India’s biggest rice-producing state, will re-enter the Pradhan Mantri Fasal Bima Yojana (PMFBY) from the current kharif season.
The Financial Express said the state had earlier stayed out of the subsidized crop insurance scheme, citing financial constraints. Sources told the paper that Prime Minister Narendra Modi will formally launch crop insurance for farmers in West Bengal on June 20.
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As the rains hesitate, insurance regains favour
The timing of the decision comes as the monsoon outlook remains weak. Forecasts point to below-normal rainfall this season, a backdrop that has sharpened the focus on risk cover for farmers.
An agriculture ministry official said Bihar, a major producer of paddy, wheat, and maize, is expected to join PMFBY in the next rabi season. Under the scheme, the subsidy burden is shared equally between the center and the states.
A modest premium for a broader shield
PMFBY is designed to provide comprehensive risk coverage from the pre-sowing stage through post-harvest losses.
Farmers pay a fixed premium of 1.5% of the sum insured for rabi crops, 2% for kharif crops, and 5% for cash crops, while the remaining premium is subsidized by the government.
The scheme is currently implemented across 24 states and union territories. In the northeastern states, the premium subsidy is split in a 9:1 ratio between the center and the states.
Expanding the insurance umbrella
To increase farmer enrolment, the agriculture ministry will soon issue an advisory to states so that more cultivators can be covered against losses linked to weather shocks, including below-normal monsoon rainfall.
The ministry noted that more than Rs 1.98 lakh crore has been paid out to farmers under PMFBY as compensation since the scheme was launched in 2016, compared with total premiums of Rs 40,097 crore paid so far.
Since Kharif 2016, 27 states and union territories have implemented the scheme in various seasons, though Bihar, Telangana, Andhra Pradesh, Jharkhand, West Bengal, and Gujarat had opted out at different points because of financial constraints. Andhra Pradesh and Jharkhand have since rejoined.
The road ahead for PMFBY
Gujarat currently runs its own Mukhyamantri Kisan Sahay Yojana, while Punjab has, in principle, agreed to implement PMFBY.
On the fiscal front, the Centre has incurred Rs 12,267 crore under PMFBY in the revised estimate for FY26, against a budget estimate of Rs 12,200 crore for the current financial year.
With West Bengal now coming back into the fold and Bihar expected to follow, the scheme’s footprint is set to expand further.
FAQs
Q1: Why is West Bengal rejoining the Pradhan Mantri Fasal Bima Yojana (PMFBY)?
Ans: West Bengal is rejoining PMFBY to provide crop insurance coverage to farmers against losses caused by adverse weather and other agricultural risks.
Q2: What premium do farmers pay under the PMFBY scheme?
Ans: Farmers pay a fixed premium of 2% for kharif crops, 1.5% for rabi crops, and 5% for commercial and horticultural crops, with the remaining cost subsidised by governments.
