Centre Approves ₹3,200 Crore Crop Insurance Payout for 30 Lakh Farmers Hit by Disasters

### Swift Summary

– The central government will release ₹3,200 crore as the first installment under the Pradhan Mantri Fasal Bima Yojana to benefit approximately 30 lakh farmers affected by natural disasters.
– An additional ₹8,000 crore is planned for distribution later, according to Union Agriculture Minister Shivraj Singh Chouhan.
– Insurance companies delaying payments to farmers will face a 12% interest penalty, which will directly benefit the affected farmers.- Launched in 2016, the crop insurance scheme provides financial support against losses from natural calamities like hailstorms, floods, droughts, and pest attacks.
– Farmers are encouraged by Minister Chouhan to report complaints directly regarding the scheme for resolution.
– This scheme has become popular among non-loanee farmers whose participation grew to 55% of total coverage in 2023-24.
– The cabinet earlier approved its extension until FY 2025-26 with a budget allocation of ₹69,515 crore.

ANI

### Indian Opinion Analysis

The Pradhan Mantri Fasal Bima Yojana stands as an critically important safety net for Indian farmers grappling with losses due to unpredictable climatic events like floods or droughts. releasing a sum of ₹3,200 crore signals strong policy efforts toward securing rural livelihoods in crisis situations and stabilizing agricultural productivity long-term.

The decision penalizing insurance companies for delayed claims introduces accountability into an often criticized process of fund distribution; this could further enhance farmer trust in the program’s efficiency over time. While voluntary adoption has risen among non-loanee farmers (to over half of total coverage), continued access awareness and streamlined implementation may be critical factors in sustaining momentum under this initiative.

For India’s agrarian economy-still vulnerable due to environmental risks-the consistent focus on safeguarding farmer income via such centralized schemes helps mitigate uncertainties while enabling resilience-building at grassroots levels.[Read More](https://economictimes.indiatimes.com/news/economy/agriculture/centre-to-release-rs-3200-crore-crop-insurance-to-30-lakh-farmers-affected-by-natural-disasters/articleshow/123227345.cms)