Nearly a decade after the launch of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS), data shows that 97 per cent of all reported claims have been settled across India. There are, however, gaps in some States/Union Territories leaving thousands of farmers waiting for their dues.
The data presented by the Ministry of Agriculture and Farmers Welfare to the Lok Sabha in April 2025 shows that Goa, Chhattisgarh, Telangana and Tamil Nadu have achieved full claim settlement under the schemes, reflecting efficient implementation. In contrast, Tripura, Andaman and Nicobar Islands, Andhra Pradesh, and Sikkim trail at the bottom, with settlement rates ranging from 91 per cent to just 51 per cent, raising concerns about operational bottlenecks.
Andhra Pradesh has emerged as the State with the highest shortfall in crop insurance payouts, with farmers still awaiting claims worth ₹1,842 crore. The Andhra Pradesh government had decided not to implement the PMFBY scheme from Kharif 2020. It re-joined the scheme with effect from Kharif 2022 season. This derailed the entire mechanism. Also the opposition has alleged that the government’s delay in paying its share delayed payout to farmers.
Maharashtra followed with ₹631 crore in pending claims, while Rajasthan ranks third with ₹478 crore yet to be disbursed. Maharashtra farmers, however, have filed the highest claims under PMFBY and RWBCIS over the past six years, accounting for ₹33,259 crore, which is nearly 24 per cent of the total claims reported across the country. Rajasthan comes next, with ₹25,284 crore, followed by Madhya Pradesh at ₹22,749 crore. Karnataka and Tamil Nadu have reported claims worth ₹11,346 crore and ₹9,067 crore respectively, making them the top five States in terms of insurance claims under the schemes.
Uneven performance
With ₹1.38 lakh crore worth of claims reported and ₹1.34 lakh crore already disbursed, the PMFBY and RWBCIS schemes have indeed scaled up significantly over the past 6 years. However, the uneven performance across States signals the need for deeper systemic reforms and stronger accountability to ensure that every farmer, no matter how small, can weather the uncertainties of agriculture.
While the Ministry of Agriculture maintains that the majority of claims are settled within stipulated timelines, delays and discrepancies have been encountered during implementation. Issues such as incorrect or delayed submission of insurance proposals by banks, disputes over yield data, delays in the release of State government funds, and inadequate staffing by insurance companies have been cited as reasons for delays or underpayments. Officials said these challenges have been addressed as per the provisions laid out in the scheme’s guidelines.
Ground reality
For farmers on the ground, the delays mean more than administrative hurdles. Ramesh Shinde, a small farmer from Nashik, highlights the precarious situation they face. “The number of claims might look meagre in the overall scheme, but for small and marginal farmers, even ₹100 is a big amount. If claims are not paid for entire seasons, how can a farmer afford to go for the next sowing cycle?” he asked.
Launched during the Kharif 2016 season, PMFBY offers farmers protection against climate-related risks by providing comprehensive risk coverage from pre-sowing to post-harvest stages at a minimal premium cost.
Extremely low premium rate is charged from farmers of 2 per cent of sum insured for Kharif crops, maximum 1.5 per cent of sum insured for Rabi crops and maximum 5 per cent of sum insured for commercial/horticultural crops. States like Odisha, Meghalaya, Jharkhand and UTs like Puducherry are paying farmers’ share of premium whereas the farmers are required to pay ₹1 only. Remaining part of actuarial premium is shared by the Central and State governments on a 50:50 basis except North eastern States (from Kharif 2020) and Himalayan States (from Kharif 2023) where it is shared in the ratio of 90:10.