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PMFBY state-level implementation Photo: Sajal's Gallery · Pexels License · source ↗

PMFBY state-level implementation and claims process

PMFBY is a centrally-sponsored scheme operationalised by participating state governments under guidelines issued by the Department of Agriculture & Farmers Welfare (DA&FW). The 2020 Revamped guidelines made participation voluntary for both farmers and states — leading to a fluid pattern of state exits, re-entries and alternative state-only crop insurance models.

State participation status

As of 2025, PMFBY is implemented in 22 states and 3 union territories. Notable non-participation:

  • Andhra Pradesh — opted out of PMFBY in 2020-21, ran the state-funded YSR Free Crop Insurance Scheme on Bhu Bharati / e-Crop area-yield data, then rejoined PMFBY from kharif 2022
  • Telangana — has stayed outside PMFBY since 2020, runs a residual cover linked to Rythu Bandhu/Rythu Bharosa; some districts moved to RWBCIS
  • West Bengal — left PMFBY in 2018-19; operates Bangla Shasya Bima (BSB) where state bears the entire farmer premium
  • Bihar — left in 2018; operates Bihar Rajya Fasal Sahayata Yojana (BRFSY), a state-funded scheme
  • Gujarat, Jharkhand, Punjab — non-participants for various stretches; intermittent re-joins

Notified crops and areas

Each participating state notifies the crops to be covered, the Insurance Unit (gram panchayat or village for major crops; revenue circle/taluk for minor ones), the premium subsidy share, the indemnity level (70%, 80% or 90% of Threshold Yield) and the cluster boundaries. The state agriculture department uploads the notification to pmfby.gov.in before the cut-off.

Farmer-level enrolment

  • Non-loanee farmers: enrol via the pmfby.gov.in portal or app, the Common Service Centre (CSC), bank branch, or insurer agent. Aadhaar, land record (pattadar passbook), bank account and sown-area declaration are mandatory.
  • Loanee farmers with KCC crop loan: were auto-enrolled till 2019; now voluntary — bank deducts premium and remits unless the farmer files an opt-out declaration with the bank before the cut-off.

Claims flow at state level

  1. Notification of loss: Localised calamity within 72 hours; mid-season adversity by state department; CCE-based at harvest
  2. Field survey or CCE: Joint survey (insurer + state) for localised; Crop Cutting Experiments at the Insurance Unit for area-yield component
  3. Yield data upload: State agriculture department uploads CCE results on pmfby.gov.in within the prescribed window
  4. Premium subsidy reconciliation: Centre and state release subsidy to insurer
  5. Claim disbursal: Insurer pays directly to Aadhaar-linked bank account through DBT within 21 days of receipt of yield data and subsidy

State-level technologies

The 2020 reforms introduced Smart-Sampling Technique (SST) and the use of remote-sensing/satellite imagery, Crop Insurance Mobile App, and the National Crop Insurance Portal (NCIP) which integrates Aadhaar, land record, bank, premium and claim flows. Andhra Pradesh's e-Crop and Telangana's Crop Booking platforms feed state-specific area-sown verification.

Common state-level disputes

  • CCE sample plot selection bias and CCE result disputes
  • Insurance Unit (gram panchayat vs. revenue circle) — larger units dilute localised loss recognition
  • Premium subsidy arrears delaying disbursal
  • Late state notification beyond the recommended cut-off
  • Sum-insured below cost of cultivation, especially for horticultural crops

See also: PMFBY overview, PMFBY cluster tendering and claims cycle, RWBCIS weather insurance, CCE crop cutting experiments, Rythu Bima.

Sources

  1. PMFBY Operational Guidelines — Revamped 2020. DA&FW.
  2. States exiting and rejoining PMFBY. Press Information Bureau.
  3. PMFBY farmer dashboard. pmfby.gov.in.