Union Agriculture Minister Shivraj Singh Chouhan announced significant changes to the Pradhan Mantri Fasal Bima Yojana (PMFBY) on Wednesday, citing the failure of the previous YSR Congress Party (YSRCP) government in Andhra Pradesh under Jagan Mohan Reddy to pay its share of crop insurance premiums. The revised policy ensures farmers receive insurance benefits regardless of state government defaults, addressing lapses that left Andhra Pradesh farmers without coverage for three years (2020–2023).
Responding to Rajasthan MP Hanuman Beniwal in Parliament, Chouhan explained that the Modi government transformed the National Agricultural Insurance Scheme (NAIS) into PMFBY in 2016, mandating claim settlements within 21 days. However, Andhra Pradesh’s non-payment of its 50% premium share—amounting to Rs 1,400 crore—denied farmers compensation for crop losses during droughts and cyclones. “Farmers suffered immensely due to the Jagan government’s failure,” Chouhan said, noting that 22 lakh farmers were affected, with claims worth Rs 1,200 crore pending by 2023.
Under the new PMFBY framework, the Union Government will cover its 50% premium share irrespective of state contributions, ensuring uninterrupted insurance for farmers. To enforce accountability, states failing to pay their share will face a 12% interest penalty, with funds directly credited to farmers’ accounts. “No farmer will be denied their rightful insurance,” Chouhan affirmed. The changes, effective from Kharif 2025, also include tech upgrades like drone-based crop assessments, benefiting 4 crore farmers nationwide since PMFBY’s inception.
Also Read: UP Farmers Urged to Insure Kharif Crops by July 31
The announcement follows Andhra Pradesh’s rejoining of PMFBY in July 2024 under the TDP-led NDA government, which cleared Rs 2,000 crore in pending claims. The policy shift, covering 558 crops across 23 states, aims to prevent repeats of Andhra Pradesh’s 3.7% claim settlement rate in 2022, among the lowest nationally.
Also Read: UP Farmers Urged to Insure Kharif Crops by July 31