MP Cabinet approves Pradhan Mantri Fasal Bima Yojana for next five years

Bhopal, May 20 (IANS) In a major boost to farmers during the ‘Kisan Kalyan Varsh’, the Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav, on Wednesday approved the continuation of the Pradhan Mantri Fasal Bima Yojana for the next five years with a massive financial outlay of Rs 11,608.47 crore.

The decision will provide much-needed security to millions of farmers in the state against crop losses due to natural calamities.

Madhya Pradesh has been at the forefront of effectively implementing the scheme since 2016, particularly through the use of advanced technology for crop assessment and yield estimation.

The state has achieved notable success under the scheme.

In 2023-24, claims worth Rs 961.68 crore were paid to 35.18 lakh farmers, while in 2024-25, Rs 275.86 crore were disbursed to 35.56 lakh beneficiaries.

These figures demonstrate the scheme’s wide reach and importance for risk mitigation in agriculture.

Under the Pradhan Mantri Fasal Bima Yojana, farmers pay a nominal premium, only 2 per cent for Kharif crops, 1.5 per cent for Rabi crops, and 5 per cent for commercial and horticultural crops.

The balance premium is shared between the Central and State governments.

The state has set the indemnity level at 80 per cent for all crops, which will remain in place in the coming years.

The Cabinet has kept the option open to adopt one of two alternative implementation models,the Cup and Surplus Sharing 80-110 Model or the Cup and Cap Surplus Sharing 60-130 Model.

The final choice will be made based on a detailed evaluation of their merits.

In both models, insurance companies bear a major share of claims, while any surplus generated by lower claims is refunded to governments.

The scheme is currently implemented across the state through 11 clusters, with insurance companies selected via competitive bidding.

Madhya Pradesh is extensively using satellite-based remote sensing technology, weather data systems, and modern data management frameworks for transparent and accurate yield assessment.

For this purpose, the Agriculture Department has tied up with the National Remote Sensing Centre (Indian Space Research Organisation), Madhya Pradesh Council of Science and Technology, and Madhya Pradesh State Electronics Corporation.

Chief Minister Mohan Yadav said this five-year extension reflects the government’s firm commitment to stabilising farmers’ income and reducing their financial risks.

The decision is expected to benefit small and marginal farmers across Madhya Pradesh by ensuring timely and adequate compensation in case of crop failure.

--IANS

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