Fasal Bima Yojana: The government has raised the funding for the Pradhan Mantri Fasal Bima Yojana (PMFBY) to ₹69,515 crore. During a cabinet meeting led by Prime Minister Narendra Modi, several significant decisions were made to benefit farmers. Key announcements included updates to the crop insurance scheme and subsidies for DAP fertilizer.
₹69,515 crore has been allocated for the PM Fasal Bima Yojana
Union Minister Ashwini Vaishnaw confirmed that a budget of ₹69,515 crore has been allocated for the Prime Minister’s Crop Insurance Scheme for the period of 2021-2026, which will remain in effect until 2025-26, ensuring that farmers receive protection for their crops against natural disasters. This decision was made during the first cabinet meeting on January 1, 2025.
Prices of DAP fertilizer will remain stable
Additionally, the prices of DAP (di-ammonium phosphate) fertilizer will remain stable, with a 50-kg bag priced at ₹1,350, despite its actual cost being approximately ₹3,000. The government will cover the difference. To further assist farmers, a special relief package of ₹3,850 crore has been approved. The crop insurance scheme will increasingly incorporate technology, allowing for quicker crop assessments and claim settlements through initiatives such as Yes-Tech and WINDS. A fund of ₹824.77 crore (FIAT) has been established to support technical research and development, enhancing the transparency and effectiveness of the crop insurance program.
Government has doubled the fertilizer subsidy
Despite fluctuations in global DAP prices, the government has ensured that Indian farmers remain unaffected. Even amidst challenges such as insecurity in sea lanes like the Red Sea and global market volatility, the government has prioritized farmers’ interests. Prime Minister Modi has also committed to ensuring that farmers do not encounter difficulties during the Covid pandemic and geopolitical tensions.
Since 2014, the government has doubled the fertilizer subsidy to ₹1.9 lakh crore. These government initiatives are expected to provide economic relief to farmers and encourage increased crop production.