Government distributing Rs 3,200 crore in crop insurance payouts to 30 lakh farmers today under the Prime Minister's Farmers' Insurance Scheme
On August 11, 2025, the Indian government held a significant milestone event in Jhunjhunu, Rajasthan, under the Pradhan Mantri Fasal Bima Yojana (PMFBY). This mega disbursement marked the first time a large-scale digital payout of crop insurance claims was executed in a single day through Direct Benefit Transfer (DBT), totaling over Rs 3,200 crore and reaching more than 30 lakh farmers across the country [1][3][4].
The event was chaired by Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan and attended by Rajasthan Chief Minister Bhajanlal Sharma, Union Minister of State for Agriculture Bhagirath Choudhary, Dr. Kirodi Lal Meena, farmer leaders, and senior officials.
The distribution of funds among the states was as follows: - Madhya Pradesh: Rs 1,156 crore (highest share) - Rajasthan: Rs 1,100 - 1,121 crore (benefiting over 7 lakh farmers) - Chhattisgarh: Rs 150 crore - Other states combined: Rs 773 crore
The government has taken steps to streamline the claim settlement system, allowing for proportional payment based solely on the central subsidy without waiting for the state’s contribution. Additionally, from the Kharif 2025 season onward, a 12% penalty will be imposed on state governments delaying their subsidy payments, and insurance companies delaying settlements will have to pay 12% interest to farmers [1][4].
The event was part of the government's ongoing efforts to ensure prompt compensation for farmers suffering from crop losses due to natural calamities [1][4]. To facilitate these objectives, platforms such as YES-TECH, WINDS, AIDE mobile app, Krishi Rakshak Portal, and helpline number 14447 have been implemented. These platforms have improved weather data accuracy, enabled village-level registration, and ensured faster claim processing [4].
In a follow-up update on August 14, 2025, it was announced that Rs 3,900 crore was transferred to 35 lakh farmers as part of the first installment for the Rabi 2024-25 season claims under PMFBY, signifying ongoing support for farmers beyond the August 11 event [2].
The Cabinet has extended PMFBY and RWBCIS till 2025-26, allocating Rs 69,515 crore, including Rs 824.77 crore for technology initiatives like YES-TECH and WINDS [4]. However, the government has not specified any new penalties for delays in claim settlements or premium payments.
This event underscores the government's commitment to secure the economic well-being of farmers by providing rapid, transparent, and large-scale digital payments of crop insurance claims, demonstrating key reforms in the claim process aimed at faster and fairer relief for farmers nationwide.
- The significant milestone event in Jhunjhunu, Rajasthan, on August 11, 2025, marked a strategic move in the business sector, as it involved the execution of a large-scale digital payout of crop insurance claims, amounting to Rs 3,200 crore, within the finance domain.
- The Pradhan Mantri Fasal Bima Yojana (PMFBY) not only focuses on rapid and transparent digital payments for crop insurance claims but also implements technological initiatives like YES-TECH and WINDS as part of its ongoing efforts to reform and modernize the business of agriculture finance.
