Lok Sabha Question No. 445 (STARRED), answered on 2026-03-24
Subject: Budgetary Allocation for PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. Kalanidhi Veeraswamy

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 445

TO BE ANSWERED ON THE 24 TH  MARCH, 2026

## BUDGETARY ALLOCATION FOR PMFBY

*445. DR. KALANIDHI VEERASWAMY:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a) whether the Government has reduced the budgetary allocation for the Pradhan Mantri Fasal Bima Yojana (PMFBY) in the Union Budget 2026-27 as compared to the allocations made in 2024-25 and 2025-26;

(b) if so, the details of Budget Estimates, Revised Estimates and Actual Expenditure under the said Scheme during the last three financial years, year-wise;

(c) the reasons for such reduction despite increasing instances of crop loss due to climate change, extreme weather events, floods, droughts and pest attacks;

(d)  whether  the  Government  has  assessed  the  likely  impact  of  reduced  allocation  on enrolment  of farmers,  timely  settlement  of  claims  and  coverage  of  small  and  marginal farmers;

(e) the details of claims pending and average time taken for claim settlement during the last three years, State-wise; and

(f)  the steps being taken by the Government to ensure adequate financial protection to farmers and to prevent delays in claim disbursal under PMFBY?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

(a) to (  f):  A statement is laid on the Table of the House.

## STATEMENT REFERRED TO PARTS (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 445 FOR 24 TH  MARCH, 2026 REGARDING BUDGETARY ALLOCATION FOR PMFBY

(a) to (d):  Year-wise details of budgetary provision and fund actually utilized on Central Government share  of premium subsidy,  Government of  India  claims  liability  and  other administrative expenses during last three years under PMFBY are given below:

(Rs. in crore)

| Year    | Budget Estimates   | Revised Estimates   | Actual Release/Expenditure   |
|---------|--------------------|---------------------|------------------------------|
| 2023-24 | 13,625.00          | 15,000.00           | 12,948.50                    |
| 2024-25 | 14,600.00          | 15,864.00           | 14,772.86                    |
| 2025-26 | 12,242.27          | 12,400.00*          | 10,089.49 (As on 31.01.2026) |
| 2026-27 | 12,400.00*         | --                  | --                           |

There is no reduction in budgetary allocation in 2026-27 compared to the budget estimates of 2025-26.

The Pradhan Mantri Fasal Bima Yojana (PMFBY), introduced in the country from Kharif 2016 season, is demand driven and voluntary for the States and farmers. Allocation and utilization of budget depends upon actuarial premium rates quoted by the insurance companies, coverage of crops, areas and farmers etc.

Due to various improvements in the scheme, high level of competition in bidding from  insurance  companies  has  been  witnessed  in  2023-25  tender  cycle,  resulting  in reduction of the premium rates to 10.2% in 2024-25 as compared to 16.7% in 2021-22. Therefore, the Government of India has been able to cover more number of farmers with less budgetary allocation. The reduced allocation has not led to any adverse impact on enrolment of farmers, timely settlement of claims and coverage of small and marginal farmers. In fact, the number of farmers covered under the scheme was 4.19 Crore in 2024-25  as  compared  to  2.60  Crore  in  2021-22,  which  is  61.15%  higher.  The improvements  made  in  the  scheme  have  also  led  to  transparency  and  early  claim settlement. Further, during the last 5 years ie. 2020-21 to 2024-25, out of a total of 17.08 crore farmers covered, 14.68 crore (86%) are small and marginal farmers.

(e): Majority  of  the  claims  are  settled  within  the  stipulated  timelines  under  the Operational Guidelines of the scheme i.e within 21 days of the receipt requisite yield data from the concerned State Government, by the insurance companies.    However, during the implementation of PMFBY, some complaints were received in the past about payment of claims which are primarily on account of (a) delay in providing State Government share of subsidy  (b) delay and discrepancy in yield data & consequent disputes between State Government  and  insurance  companies  (c)  non-payment/delayed  payment  or  under payment of claims on account of incorrect/delayed submission of insurance proposals by banks etc.  The pending claims on account of these issue are settled after their resolution as per provisions of the scheme. State-wise details of pending claims under PMFBY for the last three years, i.e. from 2022-23 to 2024-25 (as on 31.12.2025) has been given at Annexure.

(f): Government has taken various steps to strengthen implementation of this scheme, bring transparency and ensure timely settlement of claims :

-  Government has undertaken development of National Crop Insurance Portal (NCIP) as  a  single  source  of  data  ensuring  subsidy  payment,  co-ordination, transparency,  dissemination  of  information  and  delivery  of  services  including direct online enrollment  of  farmers,  uploading/obtaining  individual  insured famer's  details  for  better  monitoring  and  to  ensure  transfer  of  claim  amount electronically to the individual farmer's Bank Account.
-  In  order  to  rigorously  monitor  claim  disbursal  process,  a  dedicated  module namely 'Digiclaim Module' has been operationalized for payment of claims from Kharif 2022 onwards.  It involves integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims w.e.f. Kharif 2024, in case payment is not made timely by Insurance Company, penalty of 12% is auto-calculated and levied through NCIP.
-  Delinking of Central Government share of premium subsidy from that of State Governments  has  been  implemented  so  that  farmers  can  get  proportionate claims relating to the Central Government share.
-  Opening of ESCROW Account by the State Government concerned for deposit of  their premium share in advance as per provisions of the scheme has been made mandatory w.e.f. Kharif 2025 season.
-  Also, towards leveraging technology in implementation of the scheme, various steps like capturing of yield data/Crop Cutting Experiments (CCEs) data through CCE-Agri App &  uploading  it  on  the  NCIP,  allowing  insurance  companies to witness the conduct of CCEs, integration of State land records with NCIP etc. have already been taken to improve timely settlement of the claims to farmers.
-  Tranche based claim settlement has been initiated w.e.f. Rabi 2024-25.

## State/UT-wise details of Pending Claims under PMFBY (as on 31.12.2025)

| State/UT         | Pending Claims (in Rs. Crore)   | Pending Claims (in Rs. Crore)   | Pending Claims (in Rs. Crore)   |
|------------------|---------------------------------|---------------------------------|---------------------------------|
|                  | 2022-23                         | 2023-24                         | 2024-25                         |
| A & N Islands    | 0.00                            | -                               | -                               |
| Andhra Pradesh   | 67.02                           | 2,115.70                        | 858.95                          |
| Assam            | 0.29                            | 1.34                            | 1.24                            |
| Chhattisgarh     | 0.12                            | 0.20                            | 1.06                            |
| Goa              | -                               | -                               | 0.00                            |
| Haryana          | 16.93                           | 9.19                            | 14.53                           |
| Himachal Pradesh | 1.18                            | 3.15                            | 1.21                            |
| Jammu & Kashmir  | 0.12                            | 1.58                            | 0.51                            |
| Jharkhand        | -                               | -                               | 27.28                           |
| Karnataka        | 2.47                            | 4.34                            | 59.05                           |
| Kerala           | 2.46                            | 8.25                            | -                               |
| Madhya Pradesh   | 7.78                            | 7.90                            | 16.57                           |
| Maharashtra      | 37.28                           | 35.02                           | 179.11                          |
| Manipur          | 0.00                            | 0.01                            | 0.15                            |
| Meghalaya        | 0.00                            | 0.16                            | 0.05                            |
| Odisha           | 5.37                            | 2.64                            | 2.54                            |
| Puducherry       | 0.25                            | 0.30                            | 1.06                            |
| Rajasthan        | 21.35                           | 173.57                          | 158.52                          |
| Sikkim           | -                               | 0.01                            | -                               |
| Tamil Nadu       | 1.12                            | 2.19                            | 41.01                           |
| Tripura          | 0.05                            | 0.05                            | 0.01                            |
| Uttar Pradesh    | 13.15                           | 10.47                           | 14.90                           |
| Uttarakhand      | 0.45                            | 0.40                            | 47.97                           |
| GRAND TOTAL      | 177.38                          | 2,376.44                        | 1,425.72                        |

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