PMFBY Provides Comprehensive Crop Insurance; States Allowed Add-On Cover for Wild Animal Damage

1. At a Glance

• Pradhan Mantri Fasal Bima Yojana (PMFBY) is India's flagship crop insurance scheme launched in 2016-17 by the Ministry of Agriculture & Farmers Welfare, covering non-preventable natural risks from pre-sowing to post-harvest [S1][S3].
• States have now been permitted to notify losses by wild animals as an add-on cover on individual assessment, with the premium subsidy borne entirely by the State Government [S1][S2].
• Marks a policy shift — wild-animal damage was earlier excluded as a "preventable" risk; inclusion reflects rising human-wildlife conflict concerns flagged by MoEFCC [S1][S2].
• UPSC relevance: GS-III (agriculture, insurance, disaster mgmt) + GS-III (biodiversity/HWC).

2. Why in the News

• 3 February 2026 PIB release confirming States can notify wild-animal crop losses as add-on cover under PMFBY, with protocol embedded in Operational Guidelines [S1].
• Builds on the Kharif 2026 decision recognising wild-animal attacks as the 5th Add-on Cover under the Localised Risk category [S2].

3. Background & Evolution

• 2016 (Kharif): PMFBY launched, replacing NAIS and MNAIS [S3].
• Kharif 2020: Scheme made voluntary for all farmers (earlier compulsory for loanees); Centre-State premium subsidy ratio set at 90:10 for NE States, 50:50 elsewhere [S3].
• 2023: MoEFCC and States flag rising crop losses from wild animals; demand for inclusion [S1].
• Kharif 2026: Wild-animal damage added as 5th localised-risk add-on cover; States to notify list of animals + vulnerable insurance units using historical data [S2].

4. Core Static Facts

• Implementing Ministry: Ministry of Agriculture & Farmers Welfare, Dept. of Agriculture & Farmers Welfare [S1].
• Farmer premium share (capped): 2% Kharif, 1.5% Rabi, 5% commercial/horticultural crops [S3].
• Balance premium subsidy: Centre-State 50:50 (90:10 for NE States from Kharif 2020) [S3].
• Risks covered: non-preventable natural risks — drought, dry spell, flood, inundation, pest/disease, landslide, fire, storm, hailstorm, cyclone — pre-sowing to post-harvest [S1].
• Wild animal cover: add-on, individual assessment basis, premium fully borne by State Govt [S1].
• Localised Risk add-ons (post-Kharif 2026): hailstorm, landslide, inundation, cloudburst — and now wild animal attack as the 5th [S2].
• Likely beneficiary States: Odisha, Chhattisgarh, Jharkhand, MP, Maharashtra, Karnataka, Kerala, Tamil Nadu, Uttarakhand, Assam, Meghalaya, Manipur, Mizoram, Tripura, Sikkim, HP [S2].

5. Multi-Dimensional Analysis

Economic - Shifts fiscal burden of wild-animal cover to States, preserving Centre's actuarial subsidy frame [S1]. - Protects smallholder incomes in HWC hotspots where elephant/wild-boar/nilgai damage can wipe out single plots.

Environmental / Ecological - Indirect tool for human-wildlife conflict mitigation; reduces retaliatory killing incentive by compensating losses [S2]. - Complements Project Elephant, Project Tiger corridor management.

Administrative / Federal - States must notify animals and vulnerable units — operationalises cooperative federalism; loss assessment is individual (not area-based like main PMFBY) [S1][S2]. - Add-on premium wholly state-funded, so uptake will depend on State fiscal will.

Legal / Governance - Operationalised via PMFBY Operational Guidelines (executive, not statutory) [S1]. - Sits alongside Wild Life (Protection) Act, 1972 ex-gratia regimes administered by MoEFCC.

6. Recent Developments (last 12-18 months)

• 3 Feb 2026 — PIB confirms add-on cover for wild animal damage at State cost [S1].
• Kharif 2026 — Wild animal attack notified as 5th localised-risk add-on; paddy and other crops eligible [S2].
• PMFBY marked 9 years of operation in 2025 [per PIB release "PMFBY turns Nine"] [S4].

7. Prelims Hooks

• PMFBY launched in 2016-17 by Ministry of Agriculture & Farmers Welfare [S1][S3].
• Farmer premium: 2% Kharif / 1.5% Rabi / 5% commercial-horticultural [S3].
• Centre-State subsidy split: 50:50, but 90:10 for North-Eastern States from Kharif 2020 [S3].
• PMFBY made voluntary for loanee farmers from Kharif 2020 [S3].
• Wild-animal damage cover is an add-on, not part of base cover [S1].
• Premium for wild-animal add-on borne by State Government, not Centre [S1].
• Loss assessment under wild-animal cover is on individual basis (not area-approach) [S1].
• Request to include wild animal cover came from MoEFCC + State Govts [S1].
• Wild animal attack added as 5th Add-on under Localised Risk category, effective Kharif 2026 [S2].
• Localised risks under PMFBY include hailstorm, landslide, inundation, cloudburst, wild animal attack [S2].
• Protocol contained in PMFBY Operational Guidelines [S1].

8. Mains Relevance

• GS-III: Agriculture — issues of buffer stocks, MSP, crop insurance; e-technology for farmers.
• GS-III: Disaster Management & Environment — human-wildlife conflict.
• GS-II: Government policies & federal implementation.

Plausible stems: 1. "Discuss how PMFBY's add-on cover for wild-animal damage addresses both agrarian distress and human-wildlife conflict. Examine implementation challenges." 2. "Critically evaluate the design of PMFBY in addressing non-preventable agricultural risks. (250 words)" 3. "Cooperative federalism is visible in the customisation of central schemes by States. Illustrate with PMFBY add-on covers."

9. Related Topics to Study Next

• Restructured Weather Based Crop Insurance Scheme (RWBCIS) — sister scheme using weather indices.
• YES-TECH & WINDS — tech platforms (yield estimation, weather data) underpinning PMFBY.
• Human-Wildlife Conflict & Wild Life (Protection) Act, 1972 — MoEFCC ex-gratia.
• Project Elephant / Project Tiger — corridor & conflict management.
• MSP, PM-KISAN, KCC — farmer support architecture.
• National Disaster Response Fund (NDRF) / SDRF norms for crop loss compensation.
• Agriculture Insurance Company of India (AIC) — implementing insurer.
• Doubling Farmers' Income (Dalwai Committee).

10. Common Errors / Trap Areas

• Wrong ministry: PMFBY is under MoA&FW, not MoEFCC; the wild-animal add-on request came from MoEFCC.
• Premium split: 90:10 applies only to NE States, not all hill states — Himachal/Uttarakhand are 50:50.
• Voluntary, not compulsory: post-Kharif 2020, even loanee farmers can opt out.
• Wild-animal cover is add-on at State cost, not Centrally subsidised — easy MCQ trap.
• Loss assessment for wild-animal damage is individual, contrasting with PMFBY's default area-based assessment.
• PMFBY is governed by Operational Guidelines (executive), not a dedicated Act.

11. Sources

• [S1] PMFBY Provides Comprehensive Crop Insurance; States Allowed Add-On Cover for Wild Animal Damage (PIB, 3 Feb 2026) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2222799 — (tier: 1)
• [S2] Wild animal attack now recognised as localised risk; Paddy… (PIB) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2191224 — (tier: 1)
• [S3] Revival of Fasal Bima Yojana / Empowering Annadatas (PIB) — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2042245 — (tier: 1)
• [S4] Pradhan Mantri Fasal Bima Yojana turns Nine (PIB) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2104175 — (tier: 1)