Crop Insurance Premiums Down 34% in FY26: PMFBY Models

3 October 20251 min read

Why in the news

Premium collections shrank sharply in FY26, raising doubts about insurers’ viability under present loss-sharing designs.

Segment leader Agriculture Insurance Company of India: ₹2,539 crore.
Maharashtra: from about ₹9,000 crore to roughly ₹3,000 crore; other states may re-tender.

Cup and cap (80:110 / 60:130): low claims mean a refund to the state treasury; claims past the upper cap are shared by Centre and state.
Profit-loss sharing: low claims send part of the subsidy back to the state.

1. Under PMFBY, what is the maximum farmer premium for rabi crops, as per the notes?

The notes list rabi at a maximum of 1.5%.

2. Which insurer led the crop insurance segment, collecting ₹2,539 crore in FY26?

Agriculture Insurance Company of India was named segment leader at ₹2,539 crore.

3. Which state's crop insurance premium fell from about ₹9,000 crore to about ₹3,000 crore?

Maharashtra's premium dropped sharply after re-tendering.

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