India’s agriculture sector, a backbone of the country’s economy with almost 18% GDP contribution, remains highly vulnerable to climate risks such as droughts, floods, unseasonal rainfall, and pest infestations. To safeguard livelihoods, crop insurance in India plays a critical role in minimising financial risks and helping farmers recover from crop loss.
India’s crop insurance market is projected to witness a CAGR of 7.62% during the forecast period FY2025-FY2032, growing from USD 4.56 billion in FY2024 to USD 8.21 billion in FY2032.
What is Crop Insurance?
Crop insurance is a financial safety net that compensates farmers for crop losses due to unforeseen events like natural disasters, pests, or diseases. It reduces income uncertainty, stabilises farm income, and encourages investments in better farming practices. Understanding how crop insurance works is key to long-term sustainability for any farmer. There are multiple agriculture insurance schemes in India, both government-sponsored and private:
- Government-backed schemes are widely accessible and subsidised. The Pradhan Mantri Fasal Bima Yojana (PMFBY) remains the flagship initiative, offering coverage from pre-sowing to post-harvest stages.
- Weather-Based Crop Insurance Scheme (WBCIS) insures against adverse weather patterns like temperature or rainfall deviations.
- Licensed insurers offer private crop insurance for high-value or non-notified crops.
Each scheme offers different levels of protection, and farmers should evaluate which suits their crop, region, and risk exposure best to identify the best crop insurance scheme. To benefit from these schemes, farmers must meet certain crop insurance eligibility criteria:
- They should be land-owning cultivators, sharecroppers, or tenant farmers.
- Registration must be completed within the stipulated enrollment period.
- Aadhaar-linked bank accounts and relevant land records are required for claim disbursement.
How to Apply for Crop Insurance?
Farmers can learn how to apply for crop insurance through multiple channels:
- Government platforms like the PMFBY portal
- Common Service Centres (CSCs)
- Local agriculture offices and banks
- Mobile apps and direct insurer tie-ups
Timely enrollment is critical, especially during the sowing window.
PMFBY Scheme 2025: What’s New?
As of the PMFBY scheme 2025, improvements have been introduced to increase efficiency:
- Use of remote sensing, drones, and mobile apps for faster claim assessment.
- Voluntary participation with greater customisation.
- Direct transfer of claims to farmer accounts.
These upgrades aim to enhance the PMFBY application process and reduce delays, making it a model crop insurance for farmers.
What are the benefits of this scheme?
- Affordable premium rates (as low as 1.5% to 5%)
- Comprehensive coverage for a wide range of crops
- Transparent and technology-enabled claim processing
This scheme continues to be a lifeline for millions of farmers nationwide.
How is Agriwise enhancing farmer resilience?
Beyond insurance, farmers often need flexible financing to manage inputs, harvest costs, or expansion. Agriwise supports this journey with a range of credit solutions tailored to the agricultural ecosystem:
- Farmer Financing: Offers working capital and input loans to purchase seeds, fertilisers, and pesticides.
- Warehouse Receipt Finance: Enables farmers to secure short-term loans by pledging stored produce.
- Secured Business Loans (LAP): Loans from ₹5 lakhs to ₹5 crores for agribusiness growth against residential or commercial property.
- Invoice Bill Discounting: Converts invoices into immediate cash flow, ideal for agri supply chains.
- Solar Financing: Affordable credit for adopting solar energy in farms or agro-units.
Agriwise combines tradition with fintech innovation to make agri-credit simpler, faster, and more inclusive—supporting farmers beyond just insurance.
Conclusion
Navigating agricultural risks is a part of every farmer’s journey, making crop insurance in India a vital tool for financial protection. While schemes like PMFBY help mitigate losses due to natural calamities, sustainable farming also depends on timely credit and access to financial planning.
This is where institutions like Agriwise play a crucial role. By offering need-based financing tailored to the agricultural sector, Agriwise empowers farmers to make confident decisions—from sowing to selling. With a strong focus on technology, transparency, and deep agricultural understanding, it supports farmers beyond just credit—promoting growth, stability, and resilience.
As farming continues to evolve in 2025, it’s essential for farmers to stay informed not only about crop insurance eligibility in India and the PMFBY application process, but also about financial tools that can complement insurance. Together, these resources enable farmers to manage risk effectively and invest in a more secure future.