Emphasizing Crop Insurance Schemes is Crucial Amidst the Threat of a Super El Niño

01-Jun-2026 08:00 PM

New Delhi. A grave threat posed by a Super El Niño looms over the country's monsoon this year, raising apprehensions of damage to various *Kharif* crops and financial losses for the farming community. In such a scenario, the Pradhan Mantri Fasal Bima Yojana (PMFBY)—the Prime Minister's Crop Insurance Scheme—could prove to be immensely helpful for farmers.

While the absence of El Niño conditions and a weak monsoon could potentially impact all *Kharif* crops, there are specific crops for which insurance coverage could enable farmers to significantly mitigate their financial losses. The government must ensure that, regardless of the prevailing circumstances, farmers do not suffer any financial detriment.

Under the Pradhan Mantri Fasal Bima Yojana, if the total value of insurance claims falls below 80 percent of the total premium collected, the insurance companies are required to retain 20 percent of the gross premium and refund the remaining balance to the government.

This time, the India Meteorological Department (IMD) itself has acknowledged that, relative to the long-period average, the country is likely to receive only 90 percent of its monsoon rainfall. Typically, rainfall ranging between 96 and 104 percent is considered "normal"; however, this year, the actual rainfall could fall short of this range by at least 4 percentage points.

Karnataka is the only state in the country that has reverted to the standard framework under the PMFBY, whereas several other states—such as Maharashtra, Jharkhand, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, and Rajasthan—have yet to reach a decision regarding whether to discontinue or retain the "Cap and Cap" model under the crop insurance scheme.

Farmers will require insurance coverage more than ever this season for crops such as paddy, pulses, oilseeds, and cotton, as these are the crops most likely to bear the brunt of the rainfall deficit.