“Bihar’s small farmers gain a safety net with enhanced crop insurance schemes in 2025, led by PMFBY and state initiatives. These programs aim to protect against climate risks, boost productivity, and ensure financial stability, fostering sustainable agriculture and resilience.”
Bihar’s Crop Insurance Drive: A Lifeline for Small Farmers
In a significant boost for Bihar’s agrarian economy, the state is witnessing a transformative push in crop insurance adoption, particularly for small and marginal farmers, as of June 19, 2025. With agriculture employing 77% of Bihar’s workforce and contributing nearly 24.84% to the state’s GDP, the sector remains the backbone of its economy. However, challenges like unpredictable weather, floods, droughts, and low productivity have long plagued farmers, especially those with small landholdings averaging 0.10 hectares. To address these vulnerabilities, both the central government’s Pradhan Mantri Fasal Bima Yojana (PMFBY) and Bihar’s own crop assistance schemes are being aggressively promoted to safeguard farmers’ livelihoods.
The PMFBY, launched in 2016, has been a cornerstone of agricultural risk management in India. In Bihar, discussions are at an advanced stage for the state to rejoin the scheme after exiting in 2020, citing high premiums. The scheme offers comprehensive coverage against crop losses due to natural calamities, pests, and diseases, with farmers paying a nominal premium of 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops. The remaining premium is subsidized by the central and state governments. In 2025, the scheme’s digital platforms, including the Crop Insurance App and the National Crop Insurance Portal (NCIP), have streamlined enrollment and claim processes, making them more accessible to small farmers. Over 77 lakh farmers were reached through the ‘Meri Policy Mere Haath’ campaign in 2022-23, and similar efforts are underway in Bihar to boost awareness.
Bihar’s state-led crop assistance scheme, introduced in 2018, complements PMFBY by offering premium-free insurance. Farmers can claim up to ₹20,000 for crop losses due to poor-quality seeds, excessive heat, or fertilizer shortages. Compensation rates include ₹22,500 per acre for multi-cropping land, ₹17,000 for irrigated land, and ₹8,500 for non-irrigated land, capped at two acres per farmer. The cooperative department has opened online claim windows, ensuring swift payouts. In 2025, the state has integrated advanced technologies like YES-TECH for yield estimation and AIDE (App for Insurance Enrolment) to simplify registration, particularly for non-loanee farmers.
Small and marginal farmers, constituting 90% of Bihar’s farm households, stand to benefit most. These farmers often lack savings to invest in critical inputs like seeds and fertilizers, making insurance a vital tool for financial stability. The United Nations Development Programme (UNDP), partnering with the Ministry of Agriculture since 2018, has focused on increasing insurance penetration among small, marginal, and women farmers in Bihar. Over 3.13 lakh farmers have been trained through Fasal Bima Pathshalas, enhancing awareness and adoption.
Technological innovations are further revolutionizing the sector. Satellite imagery, AI, and blockchain are being piloted to improve claim accuracy and transparency. The central government’s ₹824.77 crore Fund for Innovation and Technology (FIAT) supports these advancements, enabling faster damage assessments and claim settlements. In Bihar, where adverse climatic conditions like floods and droughts are common, such tools are critical for building climate-resilient agriculture.
Despite progress, challenges remain. Only 2.90 billion in insurance claims were paid in Bihar by 2007, a mere 4.24% of the national total, indicating low penetration compared to states like Gujarat and Maharashtra. Limited access to institutional credit also hampers investment in modern farming techniques. However, the state’s focus on diversification, improved irrigation, and high-yielding seeds, combined with insurance, aims to reverse declining productivity trends. With a projected agricultural credit increase from ₹1,745 crore in 2001-02 to ₹5,720 crore in 2008-09, Bihar is poised to empower its farmers further.
The renewed push for crop insurance in 2025 underscores Bihar’s commitment to sustainable agriculture. By providing a financial safety net, these schemes encourage farmers to adopt innovative practices, ensuring food security and economic growth. As enrollment deadlines for Kharif 2025 approach on July 31, farmers are urged to register via pmfby.gov.in or brbn.bihar.gov.in to secure their future.
Disclaimer: This article is based on information from government sources, including pmfby.gov.in, state.bihar.gov.in, and recent reports from The Hindu and Hindustan Times. Data reflects trends up to June 19, 2025, and may be subject to updates. Readers are advised to verify details with official portals.