Budget Allocation under Pradhan Mantri Fasal Bima Yojana (PMFBY): A Comprehensive Look

In recent months, the Government of India has been actively committed to addressing the well-being of farmers across the nation. One significant initiative under the Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to alleviate financial barriers and improve agricultural productivity by introducing a revised budget allocation scheme. This blog post provides an in-depth analysis of this crucial aspect, highlighting its importance, financial implications, and the efforts being made to ensure better outcomes for farmers.

1. Importance of Budget Allocation under PMFBY

The PMFBY is a crucial initiative designed to help farmers secure their livelihoods through subsidies and improved food prices. The Government of India’s commitment to this program is evident in its increased budget allocation for the Ministry of Agriculture & Farmers Welfare, reflecting its focus on ensuring the welfare of farmers across the country.

One of the key objectives of this scheme is to address financial inequalities faced by rural farmers, especially those from marginalized communities. By providing additional funds and supporting agricultural development, the PMFBY helps bridge the gap between rural and urban farmers, boosting their earning capacity and improving living standards.

2. Financial Implications Under PMFBY

The Government of India has been implementing a revised budget allocation plan for the 2025-26 financial year under the PMFBY. Here are some key points to consider:

a. Budget Increase

• The budget for the Ministry of Agriculture & Farmers Welfare was increased from Rs 1,32,469.86 crore in the 2024-25 fiscal year to Rs 1,37,756.55 crore in the 2025-26 fiscal year.
• This increase reflects the Government’s focus on improving agricultural productivity and ensuring long-term farmers’ livelihoods.

b. Reduction in Premium Rates

• The Government has introduced interventions to reduce premium rates charged by Insurance Companies under the PMFBY scheme, addressing several concerns.
• The revised estimates for 2024-25 indicate a 10.8% increase over budget estimates from the 2023-24 fiscal year, while the actual claims liability has decreased.

c. Exemption for NER Heads

• Under the scheme, funds provided to North Eastern Region (NER) heads were increased by 10% as compared to previous years.
• Additionally, an exemption was approved in the 2025-26 budget, allowing farmers from NER heads to receive additional funds for non-NER states. This reduction in past liabilities is a significant benefit.

3. Challenges Faced by Farmers

While the Government of India has taken proactive steps to improve agricultural conditions, challenges remain, particularly among farmers from marginalized communities:

a. Complaints About Non-Paid or Delayed Claims

• Over 10% of claims were reported as non-paid or submitted with incorrect/incorrectly received insurance proposals.
• Disputes arose over yield data discrepancies and issues between State Government and Insurance Companies.

b. Lack of Compliance Under Operational Guidelines

• Farmers often faced complaints under the Revised Operational Guidelines, which could lead to delays in claiming benefits.
• These challenges highlight the need for better communication mechanisms and improved process procedures to ensure compliance.

4. Response from Union Cabinet

The Union Cabinet has taken strong measures to address these issues:

a. Exemption for NER Heads

• The increase in funds provided to NER heads was a significant step forward, alleviating financial constraints faced by rural farmers in the region.
• An exemption from mandatory allocation was also approved in recent meetings, further reducing past liabilities.

b. Additional Outlay Under the Scheme

• The Government has introduced an additional outlay of Rs 50,000 crore to support farmers across the country, with a focus on improving agricultural productivity and food security.

5. Conclusion

The revised budget allocation under PMFBY is a crucial step in addressing the financial challenges faced by rural farmers. By increasing funds for key initiatives and addressing complaints through better communication mechanisms, the Government of India has made strides towards improving agricultural conditions. However, challenges remain, particularly among marginalized communities.

Call to Action:

As farmers from all strata of society continue to navigate this complex landscape, it is crucial to look ahead to future allocations under the PMFBY scheme. By investing in infrastructure development, digital transformation, and a stronger focus on agricultural productivity, farmers can ensure their long-term survival and improve their living standards.

This blog post provides a comprehensive overview of the key aspects of budget allocation under PMFBY, highlighting its importance and efforts being made to ensure better outcomes for farmers.