The Union Cabinet, led by Prime Minister Narendra Modi, has announced the expansion of its flagship crop insurance schemes to bolster the agricultural sector.
The government has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) until the fiscal year 2025-26 with an enhanced financial commitment of ₹69,515.71 crore.
The decision is the first major policy announcement of the new year. ‘Our first decision of the New Year is dedicated to crores of farmer brothers and sisters of our country,’ PM Modi said.
Scheme Expansion
The PMFBY, launched to provide comprehensive insurance coverage to farmers against natural calamities, pests, or diseases, will now see an increased allocation to cover more farmers across the nation.
Similarly, the RWBCIS, which offers protection against adverse weather conditions, will also extend its reach.
Technological Integration
A pivotal aspect of this expansion includes establishing the Fund for Innovation and Technology (FIAT) with a corpus of ₹824.77 crore. This fund will drive the integration of advanced technology into the insurance schemes, enhancing transparency, accuracy in claim calculations, and speed in settlements.
Technologies such as remote sensing for yield estimation (YES-TECH) and Weather Information and Network Data Systems (WINDS) are set to play crucial roles in this technological overhaul.
Impact on Farmers
Extending these schemes is expected to benefit a broader spectrum of farmers by ensuring wider coverage and more effective risk management strategies.
The initiative aims to safeguard farmers from financial losses due to natural disasters and encourages the adoption of innovative farming practices by reducing the fear of financial ruin from unpredictable weather or crop diseases.
Subsidies and Accessibility
Alongside the insurance scheme expansion, the government has approved an additional subsidy of ₹3,850 crore for Di-Ammonium Phosphate (DAP) fertilizers. This is intended to keep DAP prices affordable for farmers, further supporting agricultural activities by making essential inputs more accessible.