PMFBY Enters Second Decade With ₹12,200 Crore Push, Turning Crop Insurance Into a Key Farm-Risk Tool

PMFBY Enters Second Decade With ₹12,200 Crore Push, Turning Crop Insurance Into a Key Farm-Risk Tool

New Delhi, August 30, 2026: For millions of Indian farmers, a failed crop can quickly turn a weather event into a financial crisis. The Pradhan Mantri Fasal Bima Yojana (PMFBY), now in its second decade, is increasingly positioned as a critical risk-management instrument for agriculture, providing a financial cushion against crop losses caused by extreme weather, pests and diseases.

The Centre has earmarked ₹12,200 crore for PMFBY in the Union Budget 2026–27, signalling its continued focus on expanding crop insurance and strengthening the financial resilience of farmers.

Launched on 18 February 2016, PMFBY was conceived with a straightforward objective: make crop insurance more accessible and affordable while reducing the income shock faced by farmers when crops are damaged.

Nearly a decade later, the scale of the programme has grown substantially. From Kharif 2016 through Rabi 2025–26, more than 92.46 crore farmer applications have been insured, while claims have been paid to more than 26.33 crore farmer applications, with the total value of claims exceeding ₹2.06 lakh crore.

The numbers point to the growing role of insurance in an agricultural economy where weather volatility can directly affect farm output, cash flows and household incomes.

PMFBY provides coverage against a broad spectrum of agricultural risks. These include drought, floods, cyclones, hailstorms, pests and diseases, along with provisions for prevented sowing, localized calamities, inundation, unseasonal rainfall and specified post-harvest losses.

For farmers, the significance of such coverage extends beyond compensation.

A major crop failure can affect the ability to repay loans, purchase inputs for the next season or maintain household expenditure. Timely insurance compensation can therefore act as a financial bridge, allowing farmers to continue participating in the agricultural cycle rather than being forced into distress sales or additional borrowing.

The economics of the scheme are also designed to make insurance affordable. Farmers pay a capped premium of 2% of the sum insured for Kharif foodgrain and oilseed crops, 1.5% for Rabi foodgrain and oilseed crops, and 5% for commercial and horticultural crops, with the government providing the balance of the eligible premium subsidy.

While insurance coverage is one side of the equation, accurately assessing crop damage and settling claims efficiently is equally important.

This is where technology is becoming increasingly central to PMFBY.

The government has introduced the Yield Estimation System based on Technology (YES-TECH) to strengthen technology-based crop-yield assessment. The objective is to reduce dependence on conventional assessment processes and improve the consistency and objectivity of yield estimation.

The Weather Information Network and Data System (WINDS) is another technology-led initiative aimed at expanding the availability of weather data through a network of weather stations and rainfall gauges.

Together, such systems are expected to create a more data-driven insurance architecture, potentially improving the quality of crop-loss assessments and reducing delays in claims.

For an industry dealing with millions of farms spread across vastly different climatic and geographical conditions, the ability to generate reliable, location-specific data could become a significant determinant of how efficiently insurance claims are processed.

The value proposition of crop insurance becomes particularly visible at the individual farmer level.

Consider the case of Anwar, who enrolled under PMFBY by paying a premium of just ₹100. After his crop loss was assessed, he received ₹50,600 in compensation under the scheme.

The experience illustrates the fundamental economics of crop insurance: a relatively small upfront premium can provide substantial protection against an otherwise potentially devastating financial loss.

For farmers operating on tight margins, this protection can make the difference between absorbing a bad season and facing a prolonged financial setback.

The evolution of PMFBY also reflects a broader shift in the way agricultural risk is viewed.

Climate variability, irregular rainfall, extreme weather events and changing pest patterns are increasing uncertainty around farm production. In such an environment, crop insurance is not simply a post-disaster compensation mechanism; it is increasingly part of a wider farm-risk management strategy.

A more predictable insurance framework can also support access to institutional credit and encourage farmers to continue investing in agricultural inputs despite weather-related uncertainty.

The government’s continued financial commitment suggests that crop insurance is being treated as an important component of the country’s broader strategy to strengthen rural incomes and build climate-resilient agriculture.

The scale of PMFBY, however, also brings a major operational challenge: ensuring that coverage translates into timely and accurate payouts.

For farmers, the effectiveness of an insurance programme is ultimately measured not by the size of the allocation but by how quickly and transparently a legitimate claim reaches the beneficiary.

This makes technology-driven assessment systems such as YES-TECH and WINDS particularly significant. Better weather data, more accurate yield estimates and digitised processes can potentially reduce disputes, improve transparency and accelerate settlement.

The next phase of PMFBY is therefore likely to be defined as much by technology and execution as by the size of the government’s budgetary support.

With more than ₹2.06 lakh crore already paid in claims and millions of farmers covered, PMFBY has developed into one of India’s most significant agricultural risk-transfer mechanisms.

The ₹12,200 crore allocation for 2026–27 provides another financial push as the government seeks to deepen crop-insurance coverage and strengthen the programme’s technological backbone.

The larger business story is that India’s agricultural economy is gradually moving from a model where farmers largely absorb weather risk themselves toward one where insurance, government subsidies, digital assessment and weather intelligence share the burden.

For farmers such as Anwar, that shift can have a very tangible outcome: turning a potentially crippling crop loss into a manageable financial setback.

As climate-related risks become a more persistent feature of agriculture, the effectiveness of PMFBY could increasingly influence not just farmer incomes, but also the stability and resilience of India’s broader rural economy.

PMFBY Enters Second Decade With ₹12,200 Crore Push, Turning Crop Insurance Into a Key Farm-Risk Tool

New Delhi, August 30, 2026: For millions of Indian farmers, a failed crop can quickly turn a weather event into a financial crisis. The Pradhan Mantri Fasal Bima Yojana (PMFBY), now in its second decade, is increasingly positioned as a critical risk-management instrument for agriculture, providing a financial cushion against crop losses caused by extreme weather, pests and diseases.

The Centre has earmarked ₹12,200 crore for PMFBY in the Union Budget 2026–27, signalling its continued focus on expanding crop insurance and strengthening the financial resilience of farmers.

Launched on 18 February 2016, PMFBY was conceived with a straightforward objective: make crop insurance more accessible and affordable while reducing the income shock faced by farmers when crops are damaged.

Nearly a decade later, the scale of the programme has grown substantially. From Kharif 2016 through Rabi 2025–26, more than 92.46 crore farmer applications have been insured, while claims have been paid to more than 26.33 crore farmer applications, with the total value of claims exceeding ₹2.06 lakh crore.

The numbers point to the growing role of insurance in an agricultural economy where weather volatility can directly affect farm output, cash flows and household incomes.

PMFBY provides coverage against a broad spectrum of agricultural risks. These include drought, floods, cyclones, hailstorms, pests and diseases, along with provisions for prevented sowing, localized calamities, inundation, unseasonal rainfall and specified post-harvest losses.

For farmers, the significance of such coverage extends beyond compensation.

A major crop failure can affect the ability to repay loans, purchase inputs for the next season or maintain household expenditure. Timely insurance compensation can therefore act as a financial bridge, allowing farmers to continue participating in the agricultural cycle rather than being forced into distress sales or additional borrowing.

The economics of the scheme are also designed to make insurance affordable. Farmers pay a capped premium of 2% of the sum insured for Kharif foodgrain and oilseed crops, 1.5% for Rabi foodgrain and oilseed crops, and 5% for commercial and horticultural crops, with the government providing the balance of the eligible premium subsidy.

While insurance coverage is one side of the equation, accurately assessing crop damage and settling claims efficiently is equally important.

This is where technology is becoming increasingly central to PMFBY.

The government has introduced the Yield Estimation System based on Technology (YES-TECH) to strengthen technology-based crop-yield assessment. The objective is to reduce dependence on conventional assessment processes and improve the consistency and objectivity of yield estimation.

The Weather Information Network and Data System (WINDS) is another technology-led initiative aimed at expanding the availability of weather data through a network of weather stations and rainfall gauges.

Together, such systems are expected to create a more data-driven insurance architecture, potentially improving the quality of crop-loss assessments and reducing delays in claims.

For an industry dealing with millions of farms spread across vastly different climatic and geographical conditions, the ability to generate reliable, location-specific data could become a significant determinant of how efficiently insurance claims are processed.

The value proposition of crop insurance becomes particularly visible at the individual farmer level.

Consider the case of Anwar, who enrolled under PMFBY by paying a premium of just ₹100. After his crop loss was assessed, he received ₹50,600 in compensation under the scheme.

The experience illustrates the fundamental economics of crop insurance: a relatively small upfront premium can provide substantial protection against an otherwise potentially devastating financial loss.

For farmers operating on tight margins, this protection can make the difference between absorbing a bad season and facing a prolonged financial setback.

The evolution of PMFBY also reflects a broader shift in the way agricultural risk is viewed.

Climate variability, irregular rainfall, extreme weather events and changing pest patterns are increasing uncertainty around farm production. In such an environment, crop insurance is not simply a post-disaster compensation mechanism; it is increasingly part of a wider farm-risk management strategy.

A more predictable insurance framework can also support access to institutional credit and encourage farmers to continue investing in agricultural inputs despite weather-related uncertainty.

The government’s continued financial commitment suggests that crop insurance is being treated as an important component of the country’s broader strategy to strengthen rural incomes and build climate-resilient agriculture.

The scale of PMFBY, however, also brings a major operational challenge: ensuring that coverage translates into timely and accurate payouts.

For farmers, the effectiveness of an insurance programme is ultimately measured not by the size of the allocation but by how quickly and transparently a legitimate claim reaches the beneficiary.

This makes technology-driven assessment systems such as YES-TECH and WINDS particularly significant. Better weather data, more accurate yield estimates and digitised processes can potentially reduce disputes, improve transparency and accelerate settlement.

The next phase of PMFBY is therefore likely to be defined as much by technology and execution as by the size of the government’s budgetary support.

With more than ₹2.06 lakh crore already paid in claims and millions of farmers covered, PMFBY has developed into one of India’s most significant agricultural risk-transfer mechanisms.

The ₹12,200 crore allocation for 2026–27 provides another financial push as the government seeks to deepen crop-insurance coverage and strengthen the programme’s technological backbone.

The larger business story is that India’s agricultural economy is gradually moving from a model where farmers largely absorb weather risk themselves toward one where insurance, government subsidies, digital assessment and weather intelligence share the burden.

For farmers such as Anwar, that shift can have a very tangible outcome: turning a potentially crippling crop loss into a manageable financial setback.

As climate-related risks become a more persistent feature of agriculture, the effectiveness of PMFBY could increasingly influence not just farmer incomes, but also the stability and resilience of India’s broader rural economy.

Sharad Shilpotsav 2.0’ to Showcase India’s Traditional Crafts at Dilli Haat from September 1

New Delhi| Aug 30: The Development Commissioner (Handicrafts), Ministry of Textiles, Government of India, will organise ‘Sharad Shilpotsav 2.0’ at Dilli Haat, INA, New Delhi, from September 1 to 15, 2026.

The 15-day festival will showcase traditional handicrafts from different parts of the country, highlighting India’s regional craft traditions, local techniques and the diversity of its handmade heritage. The event will be open to visitors from 11 AM to 8 PM daily.

The festival will feature participation from Artisan-Led Producer Companies, enabling artisan groups to display and sell their handmade products directly to visitors. The initiative will provide participating artisans with an opportunity to engage with customers, understand market preferences and expand the reach of their products.

The event will also feature live craft demonstrations, allowing visitors to interact with artisans and gain an understanding of the techniques and processes involved in creating traditional handmade products.

Dilli Haat will feature specially designed stalls and installations for the festival. Along with traditional crafts, visitors will be able to explore a range of handmade and handloom products representing different regions of India.

The initiative is part of the Ministry of Textiles’ efforts to provide artisans and artisan-led enterprises with greater market access while creating wider visibility for India’s traditional handicrafts and craft practices.

Event Details

 Event: Sharad Shilpotsav 2.0

Dates: September 1–15, 2026

Time: 11 AM–8 PM

Venue: Dilli Haat, INA, New Delhi

Indian Equities End Week Lower as Global Rate Uncertainty Weighs on Sentiment

Mumbai: Indian benchmark indices closed higher on Friday but remained under pressure on a weekly basis as investors stayed cautious amid uncertainty over the global interest-rate trajectory. The Nifty 50 and Sensex both registered notable weekly declines, extending their recent losing streak as traders closely tracked signals from major central banks.

Market sentiment was restrained by concerns that global interest rates could remain elevated for longer than previously expected. Persistent inflationary pressures and uncertainty surrounding the pace of monetary easing in major economies have prompted investors to adopt a more cautious approach toward equities.

Domestic factors also contributed to market volatility. Investors continued to assess developments in the derivatives market and the impact of recent changes in the closing auction mechanism, while fluctuations in heavyweight stocks added to intraday swings.

Sectoral performance remained mixed, with information technology stocks finding support, while gains in select pharmaceutical, metal and other heavyweight counters helped the benchmarks recover during Friday’s session. However, the broader market remained sensitive to global cues and foreign institutional activity.

Going ahead, investors are likely to closely watch central-bank commentary, U.S. economic data, global bond yields, crude oil prices and foreign fund flows for clues about the next phase of market direction. Analysts expect volatility to remain elevated until greater clarity emerges on the global interest-rate outlook.

Budget 2027-28 Preparations Begin, Centre Focuses on Smarter Spending and Stronger Revenues

New Delhi, Aug 29: The Centre has started the groundwork for the Union Budget 2027-28, asking ministries and government departments to prepare practical estimates of their expected expenditure and revenue for the coming financial year.

The exercise comes well ahead of the Budget and is aimed at giving the government a clearer picture of its financial requirements, while ensuring that public money is directed towards priority areas and used efficiently.

The Finance Ministry has placed particular emphasis on controlling expenditure, reviewing existing government schemes and improving non-tax revenues. Ministries and departments have been asked to assess their requirements carefully and avoid unrealistic projections.

The formal pre-Budget meetings are scheduled to begin on October 12, 2026, and continue until mid-November. The discussions will be chaired by the Secretary (Expenditure) and will form an important part of the process of finalising the government’s spending priorities.

The review of government schemes is expected to receive attention during the exercise. Programmes that are underperforming, overlapping with other initiatives or not making effective use of allocated funds could come under closer scrutiny.

The government is also looking to strengthen revenue from sources other than taxes. Better returns from public-sector assets, government services, fees, dividends and other non-tax sources could provide additional financial space without putting extra pressure on taxpayers.

For businesses, the Budget preparation process will be important because government spending has a direct and indirect influence on economic activity. Decisions on infrastructure, manufacturing, transport, energy and other sectors can affect investment plans, demand and employment.

A greater focus on efficient public spending could also encourage government departments to prioritise projects that deliver measurable economic and social benefits. This could help improve the effectiveness of government investment while maintaining fiscal discipline.

For ordinary citizens, Budget decisions can have an impact on public services, infrastructure development, welfare programmes and employment opportunities. A more carefully planned allocation of resources could help ensure that government spending reaches areas where it can make the greatest difference.

The focus on realistic estimates also indicates an effort to make Budget planning more closely aligned with actual requirements. Avoiding excessive allocations that remain unused can help improve financial management and allow resources to be redirected towards areas with greater needs.

The upcoming pre-Budget consultations will bring together ministries and departments to discuss their priorities and financial requirements. These discussions will provide the government with inputs before it finalises the broader framework for the 2027-28 Budget.

With preparations now underway, attention will gradually shift towards the sectors and programmes that could receive greater priority in the next financial year.

The Budget exercise is ultimately about balancing multiple objectives—supporting economic growth, maintaining fiscal discipline, improving public spending and ensuring that available resources are used effectively.

As the consultation process moves forward, businesses, investors and citizens will be watching for signals on government investment, policy priorities and measures that could shape economic activity in 2027-28.

Feeding India spotlights the power of nutrition behind every young athlete’s dream this National Sports Day

New Delhi, August 29, 2026: This National Sports Day, Feeding India by Eternal Foundation launched a new film focused on a part of sport that rarely gets its due: the nutrition that fuels every dream, every attempt, and every achievement. 

Set across disciplines, including gymnastics, table tennis, hockey and boxing, the film shows children training, performing, and pushing their limits. While their talent and determination take centre stage, it also reveals what powers them off the fields: nutritious meals. 

Through these young athletes, the film highlights a simple but essential truth: nutrition is not just fuel for the body, it is the foundation of ambition. It’s what gives children the strength to show up, push further and discover what they are truly capable of. 

Ajit Singh, Head – Feeding India by Eternal Foundation said, “When we talk about sporting talent in India, we celebrate the medal, the moment, the milestone. We rarely talk about the meal that made it possible. At Feeding India, our mission is to build a malnutrition-free India, because when children get the nutritious food they need, they get a real shot at their dreams, whether that dream is on a sports field or anywhere else in life.”