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Extension of crop insurance schemes
The Cabinet Committee on Economic Affairs (CCEA) extended the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) until the 2025–26 financial year. This aligns the schemes with the 15th Finance Commission period and includes a separate ₹824.77 crore fund for technology integration into their implementation.
The government increased the total allocation for PMFBY and RWBCIS to ₹69,515.71 crore for 2021–22 to 2025–26, up from ₹66,550 crore for 2020–21 to 2024–25. These schemes provide financial relief to farmers suffering crop losses due to yield or weather-related risks and are among the largest insurance programs globally.
Subsidy for DAP fertiliser
To ensure affordability, the government approved extending the subsidy on DAP fertiliser beyond December 31, 2024. Farmers will continue to purchase a 50 kg bag of DAP for ₹1,350, with the additional cost borne by the government.
The special subsidy package of ₹3,500 per tonne announced last year, effective from April 1, 2024, to December 31, 2024, will now continue from January 1, 2025, until further notice. This is above the nutrient-based subsidy (NBS) provided for non-urea fertilisers.
Information and Broadcasting Minister Ashwini Vaishnaw assured that the government’s support ensures consistent DAP availability despite global price volatility. Since 2014, the Centre has allocated ₹11.9 lakh crore in fertiliser subsidies, more than double the ₹5.5 lakh crore provided during 2004-14.
New fund for technology integration
To modernise crop insurance, the government has approved the creation of the Fund for Innovation and Technology (FIAT) with a corpus of ₹824.77 crore. This fund will accelerate claim settlements, enhance enrolment processes, and improve coverage through digital technologies.
Export of non-basmati rice
The Cabinet also approved the export of 1 million tonnes of non-basmati rice to Indonesia through the National Cooperative Export Ltd (NCEL).
Prime Minister’s statement
In a post on X (formerly Twitter), Prime Minister Modi called these decisions a New Year gift to farmers, providing security against crop damage and maintaining fertiliser prices. He emphasised the government’s commitment to farmer welfare despite global challenges.
These initiatives reflect the Centre’s prioritisation of agricultural growth, stability, and farmer welfare.
