Maharashtra gets highest crop insurance claims in PMFBY, Rajasthan follows
Maharashtra topped crop insurance claims under the government's flagship scheme with ₹18,920 crore for 28.3 million farmers, followed by Rajasthan and Karnataka. The data underscores the farm sector's vital role in supporting livelihoods despite industrial growth in these states.
New Delhi: Maharashtra, India’s largest state economy and home to the country's biggest business groups, has emerged as the top recipient of payouts under the Centre’s flagship crop insurance scheme, the Pradhan Mantri Fasal Bima Yojana (PMFBY), officials said, quoting government data.
Some other large and industrialized state economies also figured in the list of top recipients of crop insurance claims, indicating that while industrialization is driving growth, the farm sector plays a key role in providing livelihoods. These states include Karnataka, Tamil Nadu, Haryana and Uttar Pradesh.
In the data as on 15 August, India's total payout as crop insurance claims was at ₹47,602 crore for 2022-23 to 2024-25 (up to kharif 2024).
In the list of the top 10 states for the insurance claim payouts, Uttarakhand, an agrarian Himalayan state, got the lowest amount since it had fewer claimants and also a smaller population covered under the scheme, the data showed.
During the last three years from 2022-23 to 2024-25 (up to kharif 2024), Maharashtra has emerged as the state with the highest claim payouts under the scheme, with around 28.3 million of its farmers having been paid claims around ₹18,920 crore under PMFBY and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS).
Maharashtra is followed by Rajasthan, an agrarian and mining-oriented economy, with ₹8,281 crore claim payouts to around 22.7 million farmers. In the third spot is Karnataka, an industrialized and service-led economy, with a ₹6,845 crore payout given to over 5.2 million farmers during the three-year period.
Other states leading in payouts include Haryana ( ₹3,069 crore), with the claim processed for nearly 5.0 million farmers and Madhya Pradesh ( ₹2,892 crore), where nearly 10.9 million farmers benefited.
Tamil Nadu settled claims worth ₹1,749 crore, for around 3.787 million farmers, while in Uttar Pradesh, ₹1,729 crore was paid to about 3.878 million farmers. Nearly 3.28 million farmers in Chhattisgarh got claims worth ₹1,244 crore. About 3.66 million farmers in Odisha were paid ₹933 crore in claims, while Uttarakhand cleared ₹708 crore worth claims for around 463,000 farmers.
Officials said Uttar Pradesh saw a low payout of insurance compensation among the agrarian states due to its better irrigation facilities. Crop insurance data now offers insights into climate vulnerabilities as well as how states are attempting to tide over such uncertainties that have a significant impact on livelihoods and rural demand.
For Maharashtra, its vulnerability to natural calamities is a key factor. "Maharashtra is more prone to vagaries of weather, especially the Vidarbha region that is prone to drought. Any adverse weather conditions lead to loss of crops, including cereals and horticulture. This could be a reason behind the high payouts," said Purushottam Sharma, principal scientist at the National Institute of Agricultural Economists and Research (NIAP).
There are policy factors that also contributed to Maharashtra's high insurance claim payout. According to a senior Maharashtra government official associated with PMFBY, the state had introduced the ₹1 premium scheme in FY24 and FY25 for cereals, pulses, oilseeds and onions. This nominal premium had led to “a huge enrolment" and the resultant large payout, the official added.
The claim amount depends upon the extent of damage to the crop and also the type of crops insured. If the percentage of damage in a particular area is more, the farmers there are eligible for a higher compensation than those in other areas.
Moreover, the claim mechanism is different for horticulture crops. "Under the PMFBY, horticulture crops are not insured on a yield-based approach like cereals or pulses. Instead, the losses are assessed on adverse weather events such as actual damage from events like hailstorms, cyclones, or pest attacks. So, horticulture farmers are likely to get higher payouts," said a second person associated with PMFBY.
Under the government's flagship crop insurance scheme, farmers typically pay 2% of the total premium for kharif crops, 1.5% for rabi crops, and 5% for commercial or cash crops. The remaining part of the premium is equally borne by the central and state governments, with the exception of the northeastern states (from kharif 2020) and Himalayan states (from kharif 2023), where the Centre takes the bulk of the load in the ratio of 90:10.
In the rain-fed regions, where agriculture is more vulnerable to weather-related risks, insurers may adjust premiums to provide adequate financial protection for farmers. However, even within a state, premiums can vary significantly depending on local agro-climatic conditions and historical performance.
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