Massive Relief: ₹3,200 Crore to Be Credited to 30 Lakh Farmers Under PMFBY

Business News: Union Agriculture Minister Shivraj Singh Chouhan will transfer ₹3,200 crore in crop insurance claim payments to 30 lakh farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY) on Monday. The transfer will be done digitally during a program in Jhunjhunu, Rajasthan.

The event will also see the participation of Rajasthan Chief Minister Bhajan Lal Sharma, Union Minister of State for Agriculture Bhagirath Choudhary, and Rajasthan Agriculture Minister Kirodi Lal Meena.

Breakdown of the Fund Distribution

According to the government’s statement, the total claim amount will be shared between multiple states:

• Madhya Pradesh farmers will receive ₹1,156 crore.
• Rajasthan farmers will get ₹1,121 crore.
• Chhattisgarh farmers will receive ₹150 crore.
• Other states combined will get ₹773 crore.

The aim is to ensure that farmers receive timely compensation for crop losses caused by natural disasters, pests, or weather-related damage.

New Faster Claim Settlement Method

Minister Chouhan explained that the Centre has introduced a simpler and faster claim settlement process for PMFBY. Under this new system, claim payments will be made proportionally based on the central subsidy amount, without waiting for the state governments to release their share of the premium.

This change is expected to prevent delays in payouts, ensuring farmers get financial help when they need it the most.

Penalties for Delayed Payments from 2025

Starting with the Kharif 2025 season, penalties will be imposed on both states and insurance companies if they delay payments:

• States that those who delay releasing their subsidy share will have to pay 12% interest as a penalty.
• Insurance companies delaying claim settlements will also face a 12% penalty.

This move is aimed at making all stakeholders accountable and ensuring farmers receive their dues without unnecessary waiting periods.

Performance of PMFBY Since Launch

The Pradhan Mantri Fasal Bima Yojana was launched in 2016 to provide farmers with financial security against crop loss due to droughts, floods, pests, or diseases.

Since its introduction:

• The scheme has settled ₹1.83 lakh crore in claims.
• Farmers have paid a combined ₹35,864 crore as premiums.

This shows that farmers have received far greater financial benefits compared to their contributions.

Why This Matters for Farmers

For millions of farmers, agriculture is the main source of income, and crop damage can lead to severe financial distress. Delays in insurance payments often mean they cannot invest in seeds, fertilizers, or equipment for the next season.

By introducing this simplified payment system and adding penalties for delays, the government aims to make PMFBY more reliable and beneficial, helping farmers recover faster from losses and prepare for future cultivation.