What is the farmer premium share for cotton under PMFBY and how do I work it out?

Cotton is treated as a commercial or annual commercial crop under PMFBY, so the farmer pays a maximum of 5 percent of the sum insured as premium. It is not a flat rupee amount, it is a percentage of the sum insured per hectare for cotton in your district. So the steps are simple. Find the sum insured per hectare fixed for cotton in your district for the season, multiply by your hectares, then take 5 percent of that. The government and state share the rest of the actual premium, which for cotton is often much higher than 5 percent because cotton is a risky crop. For example, if the sum insured for cotton is fixed at a certain figure per hectare, your share is 5 percent of that figure times your area. The exact sum insured for cotton in Yavatmal changes each year, so confirm the current figure on the PMFBY portal or at your bank before you assume the rupee amount.