PM Fasal Bima Yojana 2025: How Much Will Farmers Pay and What Subsidy Will the Government Provide? Here's the Full Breakdown

As India continues to experience extreme weather conditions—with floods in some areas and drought in others—farmers face serious risks to their crops. That’s where the Pradhan Mantri Fasal Bima Yojana (PMFBY) comes into play, offering vital financial protection in the face of natural calamities.

With July 31 as the last date for registering Kharif crops under the scheme, farmers are urged to understand the cost-benefit calculations of the program, especially how much they will actually need to pay from their own pockets.

Why Crop Insurance Is Crucial This Year

According to the Indian Meteorological Department, India has received 9% more rainfall than average so far this monsoon. While this may sound like good news, it’s been disastrous for states like Rajasthan and Jharkhand, which saw 116% and 70% more rainfall respectively—leading to crop damage, flooding, and uncertainty.

To protect farmers from such unpredictability, the PM Fasal Bima Yojana provides insurance coverage against losses due to excessive rain, drought, pest attacks, and more. But contrary to popular belief, you don’t need to pay a hefty premium to benefit from the scheme.

How Much Do Farmers Actually Pay?

Under PMFBY, the premium for Kharif crops is just 2% of the insured sum for the farmer. The rest—almost 98%—is covered by the central and state governments. That means for a small investment, farmers can secure compensation worth tens of thousands of rupees if their crop is damaged.

Let’s understand this with a practical example.

Example: Kharif Crop Insurance in Barabanki, Uttar Pradesh

Suppose a farmer in Barabanki district is cultivating black gram (kali urad) on 3 hectares of land. Here’s how the premium works out using the PMFBY insurance calculator:

• Insurance coverage: ₹29,400 per hectare

• Total sum insured for 3 hectares: ₹88,200

• Farmer’s contribution (2%): ₹1,764 only

• Government subsidy (10%): ₹7,056 paid directly to the insurance company

• Effective cost to the farmer: Just ₹1,764 for insuring ₹88,200 worth of crop

This means that with just ₹1,764, the farmer is protected from major financial losses due to crop failure—a highly cost-effective safeguard.

How to Use the Online Insurance Calculator

To estimate your own premium:

Visit the official PMFBY portal

Select “Insurance Premium Calculator”

Choose the cropping season (Kharif/Rabi) – select Kharif for now

Select the year (2025) and the scheme (PMFBY)

Choose your state, district, and crop

Enter the number of hectares cultivated

Click “Calculate” to view the total premium and subsidy breakdown

This tool allows farmers to transparently see their share of the premium and assess the benefits before enrolling.

Full Premium Waiver in Some States

In several regions, farmers don’t have to pay anything at all. The central government covers 100% of the premium for farmers in:

• Himachal Pradesh

• Jammu & Kashmir

• Northeastern states

This complete waiver makes crop insurance even more accessible to farmers in vulnerable geographies.

Final Reminder: Last Date Is July 31

Farmers who have not yet registered their Kharif crops under PMFBY must do so before July 31. Once the deadline passes, they will lose the opportunity to avail themselves of insurance coverage for the entire cropping season.

Conclusion: Low Investment, High Protection

The PM Fasal Bima Yojana isn’t just another government scheme—it’s a critical financial safety net for India’s farming community. With minimal out-of-pocket cost, farmers can secure compensation for crop losses caused by factors beyond their control. Given the increasingly erratic monsoon patterns, crop insurance is not an option—it’s a necessity.