PM Fasal Bima Yojana: ₹3,200 Crore to Be Credited Today to 30 Lakh Farmers' Bank Accounts

In a major relief for millions of farmers, the Central Government will today transfer the first installment of the Pradhan Mantri Fasal Bima Yojana (PMFBY) for the Rabi season 2024–25 directly into beneficiaries’ bank accounts. Around 30 lakh farmers across 23 states are set to receive insurance claim payouts totaling ₹3,200 crore under the scheme.

Nationwide Program from Rajasthan’s Jhunjhunu

Union Agriculture Minister Shivraj Singh Chouhan will formally initiate the fund transfer from Jhunjhunu, Rajasthan. The event will connect farmers from across the country through a virtual platform, while nearly 35,000 farmers will be physically present at the venue. This large-scale outreach underscores the scheme’s nationwide importance.

Direct Benefit Transfer Ensures Transparency

The amount will be credited directly via the Direct Benefit Transfer (DBT) system, ensuring the money reaches farmers without middlemen. While today marks the disbursement of the first installment, farmers whose claims are still being processed will receive their payments in upcoming installments.

This payout covers only those who had insured their Rabi crops and filed claims after suffering losses due to weather-related damages.

What the PMFBY Covers

Launched in 2016, the PMFBY acts as a safety net for farmers, protecting them from financial losses caused by natural disasters such as unseasonal rain, hailstorms, drought, frost, and other climate-related challenges.

Under the scheme, farmers pay a nominal premium — just 1.5% of the sum insured for Rabi crops and 2% for Kharif crops. The remaining cost of the premium is shared equally between the Central and State Governments. This makes comprehensive crop insurance affordable even for small and marginal farmers.

Boosting Farmers’ Confidence

Officials stress that this initiative is more than just a financial transaction. It is aimed at giving farmers the confidence to invest in their next crop cycle without fear of crippling losses. “The scheme has consistently helped reduce the impact of natural calamities on agriculture and has proven to be a valuable support system for rural livelihoods,” the Agriculture Ministry noted.

By ensuring timely compensation, the government hopes to stabilize farm incomes and prevent farmers from falling into debt traps after crop failures.

Part of a Larger Rural Support Effort

This payout comes just days after Prime Minister Narendra Modi released the 20th installment of the PM Kisan Samman Nidhi Yojana, transferring ₹2,000 each to 9.7 crore farmers nationwide. Together, these initiatives form a multi-layered safety framework for agricultural households.

While the PM Kisan scheme provides fixed income support, the PMFBY focuses on risk mitigation, ensuring that unforeseen weather events do not completely derail a farmer’s livelihood.

Looking Ahead

The government has urged farmers to continue enrolling in the scheme each season to secure their crops against potential losses. With climate variability posing an increasing threat to agriculture, experts believe crop insurance will play a crucial role in maintaining food security and rural stability in the years ahead.

Today’s transfer not only delivers immediate relief but also reaffirms the government’s commitment to shielding farmers from unpredictable challenges — ensuring that they can plan, sow, and harvest with greater security and peace of mind.