PMFBY: Crop Insurance Claims for 2020-21 Drop by over 60 percent YoY to Rs 9,570 crore

In 2016-17, an improved version of PMFBY (Pradhan Mantri Fasal Bima Yojana) was launched over the former crop insurance schemes. To ensure that the benefits reach the farmers in time, the operational guidelines were revised with effect from Rabi 2018 and Kharif 2020, respectively. 

According to official data, there were no major crop losses; there has been more than 60% of decline in the insurance claims of farmers under PMFBY, i.e., Rs 9,570 crores. But, much of the crop insurance claims for the years 2020-21 and 2019-20 have been cleared by the government, Rs 27,398 crore stood for the latter crop year (July-June). 

During 2020-21, with a total insured amount of Rs 1, 93, 767 crores, 612 lakh farmers insured 445lak hectares of land under PMFBY. But, the total claims reported were only Rs 9,570 crores for the same year. Out of which, Kharif season were Rs 6,779 crores and Rabi season were Rs 2,792 crores. 

An official of Agricultural Ministry said - “The claims at Rs 9,570 crores for 2020-21 were significantly lower as there were no major losses unlike the previous year.” 

Major crop insurance was reported from three states as – Rajasthan: Rs 3,602 crores, Maharashtra: Rs 1,232 crores, and Haryana: Rs 1,112.8 crores. During 2019-20, 613 lakh farmers insured 501 lakh hectares of land under PMFBY with a total sum of Rs 2, 19, 226 crores. 

The claims for the Kharif season (Rs 21, 496 crores) were higher than that of Rabi season (Rs 5, 902 crores) for 2019-20 crop years. Maximum crop insurance claims were reported from Maharashtra (Rs 6,757 crores), Madhya Pradesh (Rs 5, 992 crores), and Rajasthan (Rs 4,921 crores) during 2020-21. 

The official added – “The crop insurance claims of farmers 2019-20 has been cleared. The outstanding claims of Rs 1,200 crores will be cleared soon. About Rs 6,845 crores crop insurance claims have been of farmers for 2020-21.”