The Central Government will on Monday transfer over INR32bn ($384m) in crop insurance claims directly to the bank accounts of more than 3m farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
The landmark event, taking place at the Jhunjhunu Airstrip in Rajasthan, will be led by Union Agriculture Minister Shivraj Singh Chouhan, with Rajasthan Chief Minister Bhajanlal Sharma as Chief Guest, alongside other ministers, officials, and farmer leaders.
Thousands will attend in person, with lakhs joining virtually nationwide.
Rajasthan farmers will receive INR11.21bn, Madhya Pradesh INR11.56bn, Chhattisgarh INR1.5bn and other states INR7.73bn.
This marks the first time such a large crop insurance payout will be disbursed in a single day via Direct Benefit Transfer (DBT).
The government has introduced a streamlined settlement process under PMFBY, enabling proportionate claim payouts based on the central subsidy without waiting for states to release their share of premiums. From Kharif 2025, delays in state contributions will incur a 12% penalty, while insurers delaying claim settlements will have to compensate farmers at the same rate.
Since its launch in 2016, PMFBY has covered more than 78 crore farmer applications and paid out INR1.83tn in claims against INR358.64bn in farmer-paid premiums — a payout ratio exceeding five times the premium collected.