PMFBY Probe Ordered Over Tiny Crop Insurance Payouts

4 November 20251 min read

Why in the news

After complaints of token claim settlements, the Agriculture Minister ordered an inquiry into PMFBY payouts.

Minister Shivraj Singh Chouhan called payouts of ₹1, ₹3, ₹5 or ₹21 “playing jokes with farmers”.
A review looked at implementation gaps, grievance redressal and insurer accountability.

Started in 2016; aids farmers when crops fail due to calamities, pests or diseases.
Farmers pay a small premium share; government subsidises the rest.

1. PMFBY, whose low payouts were probed in November 2025, was launched in which year?

The notes say PMFBY was launched in 2016.

2. Who ordered the probe into ₹1 crop insurance payouts under PMFBY?

Union Agriculture Minister Shivraj Singh Chouhan ordered it.

3. Under PMFBY, who bears most of the premium cost?

Farmers pay a small share; the rest is government subsidised.

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