PIB TrackerInsuring the harvest against a volatile climate: how PMFBY covers crop losses
The government detailed how India's crop-insurance schemes — PMFBY and the weather-based RWBCIS — protect farmers against climate and weather risks, using an area-based yield approach plus technology (crop-cutting experiments and satellite-driven YES-TECH) to assess losses and settle claims.
What happened
- The government detailed how PMFBY and the weather-based RWBCIS protect farmers against climate and weather risks.
- They mainly use an 'Area Approach' — claims based on the area-wide yield shortfall.
- Yields are assessed via Crop Cutting Experiments (CCE) and technology-based YES-TECH.
- Localised risks (hailstorm, landslide, inundation, cloudburst, fire) and post-harvest losses are assessed individually.
- PMFBY (launched 2016) offers low farmer premiums (~2% Kharif, 1.5% Rabi), with technology speeding up claims.
For Prelims
- PMFBY: The Pradhan Mantri Fasal Bima Yojana (2016) — India's flagship crop-insurance scheme against yield loss; farmer premiums ~2% Kharif, 1.5% Rabi, 5% commercial/horticulture.
- RWBCIS: The Restructured Weather-Based Crop Insurance Scheme — pays out based on weather parameters (rainfall, temperature) as a proxy for crop loss.
- Area Approach: The insurance unit is an area (e.g. village/block); claims are based on the average yield shortfall, not each farm.
- CCE: Crop Cutting Experiments — field sampling to estimate actual yield for claim settlement.
- YES-TECH: Yield Estimation System based on Technology — uses remote sensing/satellite data to estimate yields (with WINDS for weather).
- Localised/post-harvest: Individual (farm-level) assessment for hailstorm, inundation, landslide, cloudburst, fire and post-harvest losses.
For UPSC: A climate-and-agriculture item — crop insurance as a tool against climate risk. Use it for PMFBY/RWBCIS and climate-resilient agriculture, technology in insurance (CCE, YES-TECH, remote sensing), climate risk to farm incomes, and adaptation.
What it is NOT: This is an explanation of how the crop-insurance schemes assess and settle claims (a status/mechanism note), not a new scheme or a payout announcement. PMFBY/RWBCIS are existing, voluntary schemes.
For Mains
Syllabus: GS3.4 · GS3.15 · Linkage L2
Anchor
Shielding farm incomes from a volatile climate — insurance backed by technology-driven loss assessment.
Substantiation (data)
PMFBY (2016) and RWBCIS protect against weather/climate risk on an Area Approach; yields via CCE and YES-TECH; localised (hailstorm/landslide/inundation/cloudburst/fire) and post-harvest losses assessed individually; low farmer premiums.
Exemplification
Remote-sensing/YES-TECH and WINDS speeding up and improving yield and loss assessment for faster claims.
Problematisation
Basis risk in area approaches, delays/disputes in claims, enrolment, and rising climate volatility.
Way-forward
Deepen technology (satellite, weather stations), speed claims, expand coverage, and pair insurance with climate-resilient practices.
Position
Technology-enabled crop insurance is central to protecting farm incomes and building agricultural climate resilience.
Deploys into: Environment & agriculture — agriculture + disaster/climate risk (GS3.4, GS3.15) · crop insurance (PMFBY/RWBCIS), technology in loss assessment (CCE/YES-TECH/remote sensing), and climate-resilient agriculture.
Ministry of Agriculture & Farmers Welfare · 2026-07-24 · PRID 2289028 · PIB source ↗