India's national crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), provides coverage for production risks, including those caused by adverse weather conditions like El Niño. The scheme is designed by the central government, with states implementing it and sharing premiums with farmers. Innovative risk-sharing models, such as cup-and-cap arrangements, allow insurers and governments to share surpluses and losses, ensuring financial stability during challenging seasons. These mechanisms help farmers recover from losses and maintain their livelihoods.