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Wednesday, December 03, 2025 | 03:59 PM ISTहिंदी में पढें
Aggressive pricing pulls down crop insurance premiums by over 30% in FY26
Crop insurance premiums dropped over 30% in FY26 till August due to aggressive pricing, state re-tendering and unsustainable loss-sharing models under PMFBY
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premium
Premium rates are capped for farmers: a maximum of 2 per cent of the sum insured for Kharif crops, 1.5 per cent for Rabi crops and 5 per cent for commercial or horticultural crops.
Crop insurance premiums have dropped by over 30 per cent on year in the financial year 2026 (till August) due to several structural changes and aggressive pricing by insurers, according to industry sources.
The General Insurance Council (GIC) data showed that in April-August period of FY26, crop insurance premium collected has dropped by 34.29 per cent to ₹6,781 crore from the same time last year with the segment leader, Agriculture Insurance Company of India, also recording 4 per cent year-on-year (Y-o-Y) decline to ₹ 2539.29 crore.
“The crop insurance model with the current structure has led to aggressive pricing. While
Topics : crop insurance Insurance agriculture economy
