Government clarifies that States can now include wild-animal crop damage as an add-on cover under Pradhan Mantri Fasal Bima Yojana at their own cost

Key Highlights

• PMFBY provides insurance coverage against crop losses caused by non-preventable natural risks from pre-sowing to post-harvest stages.
• The scheme is voluntary for both States and farmers.
• Crop losses due to wild animals were not originally covered under PMFBY.
• States can now notify wild-animal crop damage as an add-on insurance cover through individual assessment.
• Additional coverage is available at the cost of the concerned State Government.
• Inundation risk remains covered for all notified crops, including paddy, jute, mesta and sugarcane.

India’s flagship crop insurance programme, the Pradhan Mantri Fasal Bima Yojana (PMFBY), continues to provide comprehensive protection against climate and weather-related risks, while States now have the option to extend coverage for crop damage caused by wild animals.

The clarification was provided by Minister of State for Agriculture and Farmers Welfare Ramnath Thakur in a written reply in the Lok Sabha.

PMFBY covers crop losses from pre-sowing to post-harvest

Launched in 2016-17, PMFBY provides insurance coverage against crop losses resulting from non-preventable natural risks across the crop cycle, from pre-sowing to post-harvest stages.

The scheme is voluntary for both participating States and farmers. Coverage applies to crops and areas notified by the respective State Governments.

The objective is to protect farmers from financial losses arising from weather-related events and natural calamities that affect agricultural production.

States can opt for wild-animal damage cover

According to the government, crop losses caused by wild animals were not originally covered under PMFBY because such incidents were considered preventable in nature.

However, following requests from the Ministry of Environment, Forest and Climate Change and several State Governments, the scheme’s operational guidelines were revised to allow States to include this risk as an add-on insurance cover.

Under this provision:

• States can notify crop losses caused by wild animals.
• Claims are assessed on an individual basis.
• The additional premium burden is borne by the State Government.
• Coverage is available only if the State chooses to include the add-on provision.

The move is particularly relevant in regions where farmers face recurring crop damage from animals such as wild boar, elephants, nilgai and other wildlife.

Inundation remains a covered risk

The government also clarified that inundation continues to be covered under PMFBY for all notified crops.

For water-tolerant crops such as:

• Paddy
• Jute
• Mesta
• Sugarcane

inundation-related losses are specifically covered under the scheme’s existing risk framework.

Why it matters for food supply chains

Crop insurance plays an important role in maintaining the resilience of India’s agricultural production system.

Extreme weather events, floods and other natural calamities can affect crop availability, farm incomes and agricultural supply chains. By reducing farmers’ financial exposure to such risks, PMFBY supports continuity in agricultural production and rural livelihoods.

For the food and hospitality sector, stronger crop-risk management can contribute to:

• greater stability in agricultural production;
• improved resilience of food supply chains;
• reduced disruption in the availability of key farm commodities; and
• stronger long-term food security.

Impact on hospitality and tourism

While PMFBY is primarily a farmer-support scheme, its broader impact extends to sectors dependent on agricultural output.

Hotels, restaurants, food processors and catering businesses rely on stable supplies of grains, vegetables, fruits, sugar and other agricultural commodities. Measures that improve farm resilience help support the wider food ecosystem that serves both residents and visitors.

In regions where agriculture is closely linked with rural tourism, agri-tourism and culinary tourism, better risk protection for farmers can also contribute to sustaining local food traditions and farm-based tourism experiences.

The Bigger Picture

As climate variability increases across many agricultural regions, crop insurance is becoming an increasingly important component of India’s agricultural resilience strategy. The inclusion of optional wild-animal damage coverage gives States additional flexibility to address local challenges, while PMFBY’s broader framework continues to support farmers against weather-related and natural calamity risks that affect agricultural production across the country.