Growth Trends and Inter-State Performance of Pradhan Mantri Fasal Bima Yojana: A Comparative Study of Haryana and Rajasthan

Abstract

The Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016 as a flagship crop insurance scheme aimed at providing financial protection to farmers against crop failure or losses caused by natural calamities, pests, and diseases. The primary objective of the scheme is to mitigate the financial burden on farmers and enable effective risk management in agriculture. Under PMFBY, farmers are required to pay a nominal premium, while compensation for crop losses is provided up to the sum insured.

According to official reports, during the Kharif season of 2019, approximately 16 lakh farmers covering nearly 34 lakh hectares were insured under PMFBY in Haryana. Similarly, during the Rabi season of 2018–19, around 13 lakh farmers and 26 lakh hectares were brought under the scheme in the state. In Rajasthan, the total number of farmers covered under PMFBY during the year 2018–19 was reported to be 85.37 lakh. In terms of financial performance, the scheme succeeded in extending financial assistance to farmers in both states, though the extent varied.

During 2019, claim payments amounting to ₹4,94,545 lakh in Rajasthan and ₹89,205.33 lakh in Haryana were disbursed under PMFBY.

A comparative assessment of the physical and financial performance of PMFBY—covering indicators such as area insured, number of beneficiaries, total farmers covered, sum insured, premium collection, claim settlement, and the respective shares of the State and Central Governments—revealed relatively better performance in Haryana than in Rajasthan across most parameters. The study is based entirely on secondary data collected from the Department of Agriculture and Farmers Welfare, Panchkula (Haryana), covering the period from 2016–17.for both states. The data were analyzed using descriptive statistical tools such as mean and standard deviation, along with the Compound Annual Growth Rate (CAGR), computed using SPSS software.

The findings indicate that PMFBY has played a significant role in providing financial support to farmers affected by crop losses due to natural adversities, pests, and diseases. The scheme has been widely appreciated for reducing farmers’ financial vulnerability and enhancing income stability. However, concerns have been raised regarding issues related to implementation, transparency, delayed claim settlements, and the accuracy of crop yield estimation. Despite these challenges, the overall performance of PMFBY in terms of coverage and financial assistance has been found to be satisfactory. The study suggests that greater regulatory oversight of insurance companies is necessary to address delays in claim payments and ensure adequate compensation to farmers in both Haryana and Rajasthan.