Gujarat, Bihar to rejoin Fasal Bima

The Pradhan Mantri Fasal Bima Yojana (PMFBY), the heavily subsidised crop insurance scheme, is gaining traction among the states that have either remained reluctant to roll it out, or quit briefly after joining, citing the costs to the exchequer.

- Sandip Das

Sources said after discussions with the Union ministry of agriculture and farmers' welfare, Bihar has agreed to rejoin PMFBY by the next kharif season. Also, talks are on with Gujarat to persuade the coastal state to implement the scheme.

The rethink on the part of these states is in the wake of the falling claims-to-premium ratio over recent years, which has encouraged top insurers to stay put. The ratio declined to 75.2% in FY24 from close to 90% in FY20. Officials said the average premium rate, too, has declined over the years due to competitive bidding and application of technology in crop assessment.

Andhra Pradesh and Jharkhand rejoined last year while Telangana has announced rolling it out from next kharif season. At present, 23 states are implementing PMFBY.