Government hikes crop insurance scheme allocation, subsidy for DAP fertiliser
- IBEF
- January 2, 2025
The Union Cabinet has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) until 2025-26, with an enhanced allocation of Rs. 69,515 crore (US$ 8.13 billion). This decision aims to provide risk coverage for crops against natural calamities, benefiting nearly four crore farmers across India. Additionally, Rs. 824.77 crore (US$ 96.50 million) has been allocated to the Fund for Information and Technology (FIAT) to enhance transparency and efficiency in claim settlements through technological initiatives like YES-TECH, which utilizes remote sensing for yield estimation and WINDS, which aims to deploy advanced weather data systems for hyper-local weather monitoring.
To further support farmers, the Cabinet has approved a one-time Rs. 3,850 crore (US$ 450.30 million) package to subsidize DAP fertilizers, ensuring stable prices amidst global price volatility. Special attention is being given to farmers in the North-Eastern states, with the Centre covering 90% of premium subsidies under PMFBY. Flexibility in fund allocation is also provided to address regional needs. These initiatives underscore the government’s focus on leveraging technology, ensuring financial protection, and enhancing agricultural productivity nationwide.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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