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Pmfby Crop Insurance — Calculations & Slabs for FY 2026-27

Enter your crop type, state, and sum insured to compute the farmer's share of the PMFBY premium -- capped at 2% for Kharif, 1.5% for Rabi, and 5% for commercial crops.

Last verified: June 2026 | Source: pmfby.gov.in

1. Crop Parameters

Pradhan Mantri Fasal Bima Yojana (PMFBY) Rules

PMFBY provides dynamic agricultural insurance against natural risks from pre-sowing to post-harvest stages.

Subsidy Structure

Under PMFBY, the actuarial premium is highly subsidized. General states share the subsidy on a 50:50 basis between Centre and State, whereas North Eastern and Himalayan states follow a 90:10 pattern to reduce state fiscal burdens.

Frequently Asked Questions (FAQ)

What are the fixed premium rates for farmers under PMFBY?

Farmers pay a highly subsidized, flat premium rate based on the season: 2.0% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5.0% for commercial or horticultural (annual) crops. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Who pays the rest of the insurance premium under PMFBY?

The remaining portion of the actuarial premium is subsidized and shared between the Central Government and the State Government. The subsidy sharing ratio is 50:50 in general states and 90:10 in the North Eastern and Himalayan states. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Is PMFBY crop insurance mandatory for farmers with bank loans?

No. From Kharif 2020 onwards, enrollment under PMFBY is completely voluntary for all farmers, including loanee farmers. However, loanee farmers who do not wish to enroll must submit a formal opt-out declaration to their lending bank branch before the cutoff date.

What is the Scale of Finance (Sum Insured)?

The Sum Insured (Scale of Finance) is decided on a per-hectare or per-acre basis by the District Level Technical Committee (DLTC) for each specific crop in that district. Farmers should verify local district guidelines on the PMFBY portal. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

What Does This Calculator Do?

This PMFBY Crop Insurance Premium Calculator calculates the subsidized premium payable by a farmer under the Pradhan Mantri Fasal Bima Yojana (PMFBY). It also projects the Government (Centre + State) subsidy share and the total sum insured based on land area.

How to Use It

  1. Crop details: Select the season (Kharif, Rabi, or Annual/Horticultural) and the crop type.
  2. Sum Insured & Area: Input the sum insured per acre (default ₹50,000) and your land area in acres.
  3. State: Select your state to calculate localized subsidy splits (e.g. 50:50 for general states vs 90:10 for North East).

The Logic Explained Simply

  • The Concept: PMFBY provides financial protection for crops against natural calamities. To make it affordable, the farmer's premium is capped at a tiny fraction of the sum insured:
  • Kharif Crops: 2.0% of Sum Insured.
  • Rabi Crops: 1.5% of Sum Insured.
  • Annual/Commercial Crops: 5.0% of Sum Insured.
  • The remaining premium (Actuarial Premium Rate set by bidding, typically 8-15%) is paid as a subsidy by the government.
  • The Formula:
  • Farmer Premium = Sum Insured × Acres × Cap %
  • Government Subsidy = (Actuarial Rate × Sum Insured × Acres) - Farmer Premium

Real-World Calculation Breakdown

A farmer in Rajasthan has 5 acres of groundnut (Kharif crop) with a scale of finance (Sum Insured) of ₹50,000 per acre. The bidding actuarial rate is 12%.

  • Total Sum Insured: 5 acres × ₹50,000 = ₹2,50,000.
  • Farmer Premium (Capped at 2%): ₹2,50,000 × 2% = ₹5,000.
  • Total Actuarial Premium: ₹2,50,000 × 12% = ₹30,000.
  • Government Subsidy (90% covered): ₹30,000 - ₹5,000 = ₹25,000 (split 50:50 between Center and Rajasthan state).

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