The Ministry of Agriculture and Farmers’ Welfare has announced significant reforms to the Pradhan Mantri Fasal Bima Yojana (PMFBY), introducing two major risk covers long demanded by States and farming communities. Under the revised modalities, crop losses caused by wild animal attacks and paddy inundation will now be recognised as part of the localised risk category, marking one of the most substantial expansions of the scheme since its inception. The updated framework will be implemented nationwide from the Kharif 2026 season.

The decision addresses persistent gaps in the crop insurance system that left several categories of farmers without compensation for recurring and severe damages. The newly approved modalities follow the recommendations of an expert committee constituted to reassess emerging risks in Indian agriculture. By accepting these recommendations, the government aims to strengthen farmer protection in regions highly vulnerable to wildlife conflict and seasonal flooding.

Under the new provisions, crop loss due to wild animal attack will be introduced as the fifth add-on cover under the localised risk category of PMFBY. States will be tasked with notifying which wild animals are responsible for crop depredation within their jurisdictions. They will also identify vulnerable districts or insurance units using historical data, ensuring that coverage is targeted and scientifically grounded. Farmers will be required to report damage within 72 hours through the Crop Insurance App by uploading geotagged photographs, enabling faster verification and settlement of claims.

This reform responds to widespread concerns from States where human–wildlife conflict has been on the rise. Farmers in areas adjoining forests, wildlife corridors, and hilly landscapes have long suffered heavy losses from elephants, wild boars, nilgai, deer, monkeys and other species that frequently destroy standing crops. Until now, these losses typically fell outside the purview of crop insurance, leaving affected farmers without financial relief despite repeated and predictable damage.

The second major element of the reform is the reinstatement of paddy inundation as a recognised localised calamity under PMFBY. Originally part of the scheme, paddy inundation was removed in 2018 due to difficulties in assessing submerged crops and concerns over potential misuse. Its exclusion, however, created a notable protection gap for rice-growing regions that experience regular flooding. With the hazard now reintroduced under a more structured and technologically verifiable framework, paddy farmers in flood-prone and coastal States will regain access to compensation mechanisms previously unavailable to them.

The revised coverages are expected to particularly benefit States with high human–wildlife conflict such as Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Karnataka, Kerala, Tamil Nadu and Uttarakhand. Himalayan and Northeastern States including Assam, Meghalaya, Manipur, Mizoram, Tripura, Sikkim and Himachal Pradesh are also likely to see significant gains, given the widespread incidence of wildlife depredation in these regions.

Similarly, States frequently affected by heavy rainfall, overflowing rivers and coastal flooding—such as Odisha, Assam, West Bengal, Tamil Nadu, Kerala, Karnataka, Maharashtra and Uttarakhand—will benefit from the restored paddy inundation cover. Recurrent submergence of paddy fields has historically placed many farming households under economic strain, particularly during monsoon and cyclone seasons.

By expanding PMFBY to include these critical risks, the government has taken a major step toward creating a more inclusive and resilient crop insurance system. The reliance on digital tools, geotagged evidence and district-specific risk assessments is expected to reduce delays and improve transparency in claim processing. With implementation scheduled for Kharif 2026, States and insurers will have ample time to align operational processes with the new modalities.

The updated framework represents a substantial shift in India’s approach to agricultural risk management, acknowledging the increasingly complex challenges posed by climate variability, ecological pressures and changing land-use patterns. By recognising the realities faced by farmers in wildlife-prone and flood-affected landscapes, the reforms aim to provide more reliable, equitable and technology-driven protection under one of the country’s flagship agricultural support programmes.