Impact of Pradhan Mantri Fasal Bima Yojana - a comparative study

Abstract

The Pradhan Mantri Fasal Bima Yojana (PMFBY), introduced in 2016, represents a major policy intervention by the Government of India to enhance agricultural risk management by providing comprehensive crop insurance coverage against yield losses arising from natural calamities, pests, and diseases. This study evaluates the performance of PMFBY across Kharif and Rabi seasons and undertakes a comparative assessment with its predecessor schemes, namely the National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme (MNAIS). Relying on secondary data spanning five agricultural years from 2018 to 2022, the analysis examines trends in coverage, farmer participation, and scheme effectiveness. The findings indicate that PMFBY has significantly expanded insurance coverage across diverse crop categories, including food crops, oilseeds, and horticultural crops, through the provision of subsidized premium rates, thereby strengthening farmers’ financial resilience. Seasonal analysis reveals a consistently higher level of farmer participation during the Kharif season compared to the Rabi season, reflecting greater risk exposure during the monsoon-dependent cropping cycle. Furthermore, comparative results demonstrate that PMFBY outperforms NAIS and MNAIS in terms of outreach, adoption, and risk mitigation capacity. The study concludes that PMFBY has emerged as the most effective crop insurance framework in India, contributing substantially to income stabilization and reinforcing institutional mechanisms for agricultural risk management.