What are the PMFBY premium rates for farmers?

Farmer premium rates under PMFBY are capped at: Kharif crops 2% of sum insured, Rabi crops 1.5% of sum insured, Annual Commercial and Horticulture crops 5% of sum insured. The actual actuarial premium (8-14%) is much higher — the government pays the balance split 50:50 between Centre and State. There is no cap on government subsidy since Kharif 2020.

How do I file a PMFBY crop insurance claim?

For localised calamities and post-harvest losses, intimate the loss within 72 hours via the PMFBY mobile app, insurance company helpline, bank branch, or CSC. For area-approach claims (yield-based losses), no individual intimation is needed — the government conducts Crop Cutting Experiments and all insured farmers in the Insurance Unit automatically receive claims if yield falls below threshold. Claims must be settled within 2 months of receiving yield data.

How much does the government subsidise PMFBY premiums?

The government subsidises 83-96% of the actual crop insurance premium under PMFBY. The farmer pays only 2% (Kharif), 1.5% (Rabi), or 5% (Commercial) while the actual actuarial premium is 8-14%. The subsidy is split 50:50 between Central and State governments with no cap since Kharif 2020. This makes PMFBY one of the most heavily subsidised crop insurance schemes in the world.

PMFBY Crop Insurance Calculator India — FY 2025-26

Q: What is PMFBY and who is eligible?

Pradhan Mantri Fasal Bima Yojana (PMFBY) is India's flagship crop insurance scheme launched in Kharif 2016. All farmers — landowners, tenant farmers, and sharecroppers — growing notified crops in notified areas are eligible. Since Kharif 2020, enrollment is voluntary for all farmers including KCC holders. KCC loan holders are auto-enrolled unless they opt out in writing at their bank branch before the cut-off date.

Q: What risks does PMFBY cover?

PMFBY covers the entire crop cycle: prevented sowing (25% of sum insured if sown area is less than 75% of normal), standing crop losses from drought, flood, pests, hailstorm, cyclone (area-approach based on Crop Cutting Experiments), post-harvest losses from cyclone/unseasonal rain within 14 days of harvest, localised calamities like hailstorm and landslide (individual farm assessment), and mid-season adversity with on-account advance payments.

Calculate your Pradhan Mantri Fasal Bima Yojana premium for Kharif (2%), Rabi (1.5%), and commercial/horticulture (5%) crops. See government subsidy breakdown (50:50 Centre-State), estimate claim amounts, and compare 5-year outcomes of insured vs uninsured farming.

Calculate your PMFBY crop insurance premium and see how much the government subsidises

Crop season

Kharif 2%, Rabi 1.5%, Commercial/Horticulture 5%

Area insured

hectares

Total area under the crop (1 acre = 0.4 hectare)

Sum insured per hectare

₹

Based on Scale of Finance set by District Level Committee. Check pmfby.gov.in

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How to Use This Calculator

My Premium tab

Select your crop season (Kharif, Rabi, or Annual Commercial/Horticulture), enter the area insured in hectares, and the sum insured per hectare (based on the Scale of Finance set by your District Level Technical Committee). The calculator shows your farmer premium, the actual actuarial premium, the government subsidy amount (split 50:50 between Centre and State), and value-for-money metrics.

Claim Estimation tab

Select the cause of crop loss (mid-season adversity, prevented sowing, post-harvest losses, or localised calamity), enter your total sum insured and the estimated crop loss percentage. The calculator shows the estimated claim amount, the step-by-step claim process, and the different PMFBY coverage types with their payout rules.

PMFBY vs No Insurance tab

Enter your crop details to see a 5-year analysis comparing insured vs uninsured farming. See total premiums paid, expected claims received, net benefit of PMFBY, and a year-by-year scenario showing how the scheme protects against catastrophic losses. Understand why PMFBY is one of the most heavily subsidised crop insurance schemes globally.

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The Formula

PMFBY (Pradhan Mantri Fasal Bima Yojana) premium calculation is straightforward. The farmer pays a capped percentage of the sum insured, and the government pays the balance.

Sum Insured:
Total Sum Insured = Sum Insured per Hectare (Scale of Finance) × Area in Hectares

Farmer Premium (capped rates):
Kharif crops: 2% of Sum Insured
Rabi crops: 1.5% of Sum Insured
Annual Commercial / Horticulture: 5% of Sum Insured

Actual Premium (actuarial):
Actual Premium = Sum Insured × Actuarial Rate (determined by insurer bidding, typically 8-14%)

Government Subsidy:
Govt Subsidy = Actual Premium − Farmer Premium
Split: 50% Central Govt + 50% State Govt

Claim Calculation:
Yield-based: Claim = (Threshold Yield − Actual Yield) / Threshold Yield × Sum Insured
Prevented sowing: Claim = 25% of Sum Insured
Post-harvest / Localised: Proportional to assessed crop loss

The Scale of Finance (sum insured per hectare) is set by the District Level Technical Committee (DLTC) for each crop and district. This is the maximum amount the insurance company will pay per hectare in case of total crop loss. Check your district's rate at pmfby.gov.in.

Example

Ramesh — 3 hectares of paddy (Kharif), Vidarbha district, Maharashtra

Ramesh (42) is a smallholder farmer growing paddy rice on 3 hectares in Vidarbha. The district Scale of Finance for paddy is &rupee;1,10,000/hectare. He wants to know his PMFBY premium and what happens if floods damage his crop.

Step 1: Calculate Premium

Crop seasonKharif (2% premium rate)

Area insured3 hectares

Sum insured per hectare₹1,10,000

Total sum insured₹3,30,000

Farmer premium (2%)₹6,600

Step 2: Government Subsidy

Actual actuarial premium (~12%)₹39,600

Government subsidy₹33,000

Central government share (50%)₹16,500

State government share (50%)₹16,500

Step 3: If Flood Damages 60% of Crop

Crop loss (mid-season flood)60%

Estimated claim₹1,98,000

Premium paid₹6,600

Net benefit₹1,91,400

Ramesh pays just ₹6,600 in premium for ₹3,30,000 of coverage. If floods damage 60% of his crop, he receives ₹1,98,000 — a 30x return on his premium. Without PMFBY, this ₹1,98,000 loss would come entirely from his own pocket, potentially pushing him into debt.

FAQ

What is PMFBY and who is eligible? ▼

Pradhan Mantri Fasal Bima Yojana (PMFBY) is the Government of India's flagship crop insurance scheme launched in Kharif 2016. All farmers — landowners, tenant farmers, and sharecroppers — growing notified crops in notified areas are eligible. Since Kharif 2020, enrollment is voluntary for all farmers, including those with Kisan Credit Card (KCC) loans. KCC holders are auto-enrolled unless they submit a written opt-out declaration at their bank branch before the seasonal cut-off date. The scheme covers food crops (cereals, millets, pulses), oilseeds, and annual commercial/horticulture crops.

How is the sum insured determined under PMFBY? ▼

The sum insured per hectare is equal to the Scale of Finance for that crop in that district, as determined by the District Level Technical Committee (DLTC). The Scale of Finance represents the cost of cultivation per hectare and varies by crop, district, and season. For example, paddy rice in Maharashtra may have a Scale of Finance of ₹1,10,000/hectare while wheat in Punjab could be ₹80,000/hectare. Check your district's exact rates at pmfby.gov.in > "Crop Insurance" > select your state, district, crop, and season.

What risks does PMFBY cover? ▼

PMFBY provides comprehensive coverage across the entire crop cycle: (1) Prevented sowing — if insured area sown is less than 75% of normal due to deficit rainfall or adverse conditions, 25% of sum insured is paid. (2) Standing crop losses — yield losses due to drought, flood, inundation, pest/disease, landslide, fire, lightning, storm, hailstorm, cyclone. Uses area-approach based on Crop Cutting Experiments (CCE). (3) Post-harvest losses — covers cyclone, cyclonic rain, and unseasonal rain within 14 days of harvest for crops left to dry in the field. (4) Localised calamities — hailstorm, landslide, inundation, cloud burst assessed at individual farm level. (5) Mid-season adversity — on-account payment of up to 25% of likely claim as advance during the season.

How do I file a crop insurance claim under PMFBY? ▼

For localised calamities and post-harvest losses: intimate the loss within 72 hours via the PMFBY mobile app (Crop Insurance), the insurance company helpline, your bank branch, or the CSC (Common Service Centre). Provide your policy number, crop details, and loss description. The insurance company will arrange a field-level assessment within 48 hours. For area-approach claims (yield-based losses): no individual intimation needed — the government conducts Crop Cutting Experiments (CCE) at the Insurance Unit level (village/block). If average yield falls below the threshold yield, all insured farmers in that unit automatically receive proportional claims. Insurance companies must settle claims within 2 months of receiving yield data. Delays beyond this attract 12% annual interest penalty.

How much does PMFBY cost vs private crop insurance? ▼

PMFBY is massively subsidised. The farmer pays only 2% (Kharif), 1.5% (Rabi), or 5% (Commercial/Horticulture) of the sum insured. The actual actuarial premium ranges from 8% to 14% depending on the crop and region — meaning the government subsidises 83-96% of the true insurance cost. The subsidy is split 50:50 between Centre and State. By comparison, private crop insurance (if available) would charge the full actuarial premium of 8-14%, making it 4-7x more expensive for the same coverage. Since Kharif 2020, there is no cap on the government subsidy, ensuring full coverage even in high-risk, disaster-prone areas. This makes PMFBY one of the most farmer-friendly crop insurance schemes in the world.

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