Jaipur: In a significant policy initiative aimed at strengthening India's agricultural safety net, the Rajasthan government has forwarded 11 comprehensive reform proposals to the Union Ministry of Agriculture and Farmers Welfare seeking structural changes to the Pradhan Mantri Fasal Bima Yojana (PMFBY).
The recommendations are intended to improve transparency, ensure fair compensation, reduce disputes, and enhance the overall effectiveness of one of India's largest crop insurance programs.
According to state officials, the proposals were prepared after consultations with farmer organizations, agricultural experts, departmental officers, and stakeholders across Rajasthan.
Key Reform Proposals
The Rajasthan government has urged the Centre to:
Make crop insurance completely voluntary for loanee farmers and prohibit premium deductions without explicit consent.
Link all crop insurance policies with Agri stack IDs for better digital verification.
Integrate Aadhaar, Agri stack ID, Jan Aadhaar, and bank details through the NCIP portal.
Verify sown crops using e-Girdawari and crop booking applications before policy approval.
Assess crop damage at the individual farm level using modern technology instead of broad regional estimates.
Establish technology-based standards for add-on insurance claims.
Automatically impose interest or financial penalties on insurance companies for delays in claim settlement.
Refund insurance premiums with interest if policies are cancelled.
Include farmer representatives in state-level grievance redressal committees.
Technology at the Centre of Reforms
The Agriculture Department has emphasized replacing conventional crop-cutting experiments with technology-based field-level assessments. Officials argue that satellite monitoring, digital verification, and precision-based evaluation could significantly reduce disputes, eliminate arbitrary assessments, and ensure farmers receive compensation that accurately reflects their losses.
Coverage Gap Remains a Major Concern
Despite the nationwide scheme, Rajasthan continues to face low crop insurance penetration.
Government data indicates that during FY 2025–26:
Only 36% of the state's agricultural area was insured.
Approximately 64% of farmland remained outside the insurance network.
Churu recorded the highest insurance coverage at 77%.
Dholpur registered only 5%, Karauli 7%, and Dausa 9%, highlighting sharp regional disparities.
Claims vs Premiums
Official figures show that during the past five years:
Category
Amount
Total Premium Collected
₹26,757.56 crore
Farmers' Contribution
₹4,650.78 crore
Rajasthan Government Contribution
₹11,253.68 crore
Central Government Contribution
₹10,853.10 crore
Claims Paid to Farmers
₹18,189.16 crore
Difference Between Premiums & Claims
₹8,568.40 crore
The figures have intensified discussions over the financial balance between insurer earnings and farmer benefits, prompting calls for stronger accountability and faster claim settlement mechanisms.
District-Wise Claim Highlights
Among Rajasthan's districts, Churu received the highest insurance payouts over the last five years, followed by Hanumangarh, Jodhpur, Jalore, Nagaur, and Bikaner. In contrast, Rajsamand, Dholpur, and Karauli recorded the lowest claim disbursements.
Looking Ahead
If approved by the Union Government, Rajasthan's recommendations could reshape the implementation of PMFBY by making compensation more transparent, improving digital governance, and strengthening farmer confidence in the crop insurance system. The proposals also reflect a broader effort to modernize agricultural risk management through technology and improved regulatory oversight.
