Evaluating the Performance of Pradhan Mantri Fasal Bima Yojana (PMFBY) In India

ABSTRACT: Crop insurance is a critical tool for mitigating agricultural risks, providing financial protection to farmers against losses due to natural disasters, pests, and other unforeseen events. In India, the government has implemented various crop insurance schemes over the years, with the Pradhan Mantri Fasal Bima Yojana (PMFBY) being one of the most prominent initiatives. This research article evaluates the performance of PMFBY from 2016 to 2024, focusing on a state-wise and season-wise analysis. The study examines key parameters such as the number of loanee and non-loanee farmers covered, the area insured, the sum insured, premium collection, claims paid, and the number of farmers benefiting from the scheme. Using simple descriptive statistics, the analysis reveals that states like Madhya Pradesh, Rajasthan, Maharashtra, and Uttar Pradesh have reaped significant benefits from the scheme. Despite not fully meeting its original objectives, the study finds that participation in the scheme has steadily increased over time. The paper concludes by suggesting that more efforts are needed to maximize the scheme’s potential and expand its reach to more farmers across the country. KEYWORDS: Crop insurance, agricultural risks, compensation, MSP, PMFBYs