August 12, 2025

Get ready for a big boost! The Central government is all set to release a hefty ₹3,200 crore as the first installment of the much-loved Pradhan Mantri Fasal Bima Yojana (PMFBY). This payday will benefit around 30 lakh farmers who faced the wrath of recent natural disasters. But wait, there’s more - a second wave of ₹8,000 crore is on its way soon! Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan shared this thrilling update on his X post on Monday. What’s even better? Insurance companies are not just sitting pretty. If they delay payments, they will have to cough up a 12% interest penalty – and guess who gets the bonus? The farmers themselves! The minister said, "Today, approximately 30 lakh farmers affected by natural disasters will have ₹3200 crore deposited into their accounts under the Pradhan Mantri Fasal Bima Yojana. This is the first installment, so farmers whose accounts do not receive funds today should not worry. Approximately ₹8000 crore will be released later." In a heartfelt video, Chouhan explained, "In natural disasters, crops get destroyed, and when that happens then it is not just the crops which get destroyed but the lives of farmers too, so for that the Prime Minister made Pradhan Mantri Fasal Bima Joyana, which became a boon for all the affected farmers." The minister also promised full support for farmers, inviting them to share any complaints directly with him: "Farmer brothers and sisters, serving you is my worship of God. If you have any complaints regarding the crop insurance scheme, please inform me. We always stand with you." Why the penalty to insurance firms? Chouhan added, "To ensure farmers receive funds on time, we have decided that if an insurance company fails to deposit the money within the stipulated time frame after a claim, it will have to pay 12% interest, which will go directly to the farmer's account." PMFBY celebrates its ninth birthday on February 18, 2025, standing tall as a shield for farmers against unpredictable natural hazards like hailstorms, droughts, floods, cyclones, and pest attacks. The scheme helps keep farmers’ incomes steady and drives them to try new farming ideas. According to the Ministry of Agriculture and Farmers Welfare, "Crop insurance is an important risk mitigation tool to protect farmers from natural calamities." The Union Cabinet recently gave a green light to continue PMFBY and the Restructured Weather Based Crop Insurance Scheme till 2025-26 with a massive ₹69,515.71 crore budget. Although the scheme is voluntary, it is gaining popularity with non-loanee farmers making up 55% of the total coverage in 2023-24. So, the crop insurance shield is not just a safety net; it’s a farmer’s lifeline going stronger than ever!

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Tags: Pradhan mantri fasal bima yojana, Crop insurance, Farmers, Natural disasters, Government scheme, Insurance penalty,