“On June 26, 2025, Gujarat unveiled a revamped crop insurance scheme to shield farmers from financial losses due to crop failures. With enhanced coverage, subsidized premiums, and faster claim settlements, the initiative aims to secure livelihoods and boost agricultural resilience across the state, particularly for small and marginal farmers.”
Gujarat’s New Crop Insurance Plan to Protect Farmers
On June 26, 2025, the Gujarat government launched an ambitious overhaul of its crop insurance scheme under the Pradhan Mantri Fasal Bima Yojana (PMFBY), aiming to provide a robust safety net for farmers facing unpredictable weather and market challenges. The updated scheme, tailored to address the needs of Gujarat’s diverse agricultural landscape, introduces several farmer-friendly measures to ensure financial stability and promote sustainable farming practices.
The revamped scheme offers expanded coverage for a wide range of crops, including staples like wheat, rice, and cotton, as well as horticultural crops such as onions and tomatoes. Unlike previous iterations, the 2025 plan reduces premium rates for small and marginal farmers, with the state government subsidizing up to 60% of the cost for kharif crops and 50% for rabi crops. This move is expected to benefit over 15 lakh farmers across Gujarat, particularly in drought-prone regions like Kutch and Saurashtra.
A key highlight of the scheme is its focus on technology-driven claim assessments. The government has partnered with private insurers and agritech firms to deploy satellite imagery and drones for real-time crop damage evaluation. This is a significant upgrade from the manual surveys that often delayed payouts. Officials claim that claims will now be settled within 15 days of assessment, compared to the earlier average of 45 days.
The scheme also introduces a voluntary enrollment model, allowing farmers to opt in based on their needs, with a deadline of July 31, 2025, for kharif season registrations. For loanee farmers, the premium will be automatically deducted unless they submit a dissent letter by July 24, 2025, ensuring seamless participation. Non-loanee farmers can enroll through Common Service Centres (CSCs) or online portals, making the process more accessible.
To address past issues of fraudulent claims, the government has implemented stricter verification protocols. A recent case in Maharashtra, where 4,453 bogus claims were filed, prompted Gujarat to introduce Aadhaar-linked applications and mandatory land ownership checks. Violators face a five-year ban on government subsidies and potential criminal prosecution, ensuring transparency and accountability.
The initiative comes at a critical time, as Gujarat’s farmers have faced significant challenges due to fluctuating monsoon patterns and low market prices. For instance, onion farmers in the state received ₹124 crore in aid earlier this year after prices plummeted during the 2024-25 rabi season. The new scheme aims to prevent such financial distress by offering coverage for both yield losses and post-harvest damages caused by natural calamities.
Farmer unions have welcomed the scheme but urged the government to raise awareness in rural areas. “The technology is good, but many farmers in remote villages don’t know how to enroll,” said Ramesh Patel, a farmer leader from Banaskantha. The state has responded by launching a statewide campaign, including mobile vans and local language helplines, to educate farmers about the scheme’s benefits and enrollment process.
The Gujarat government has allocated ₹500 crore for the scheme in 2025-26, with additional funding expected from the central government. With agriculture employing nearly 50% of the state’s workforce, the initiative is poised to play a pivotal role in securing livelihoods and fostering resilience against climate uncertainties.
Disclaimer: This article is based on information from government announcements, agricultural reports, and recent news on crop insurance schemes in India. Data is sourced from credible outlets like The Hindu BusinessLine and The Indian Express, with additional insights from farmer feedback and policy documents. Always verify details with official government portals before enrolling in such schemes.