Budget of Prime Minister Crop Insurance Scheme increased, farmers will get big relief

Many major decisions were taken in the interest of farmers in the cabinet meeting held on January 1, 2025 under the chairmanship of Prime Minister Narendra Modi. These include important announcements regarding increasing the budget for the Pradhan Mantri Fasal Bima Yojana (PMFBY) and subsidy on DAP fertilizer. These decisions will provide protection to farmers from natural disasters, encouragement in crop production, and economic relief.

Increased budget of Prime Minister Crop Insurance Scheme (PMFBY)

• The government has set a budget of ₹69,515 crore for the crop insurance scheme during 2021-2026.
• The scheme will continue till 2025-26 and will continue to provide coverage to farmers to protect their crops from natural disasters.
• Union Minister Ashwini Vaishnav said that the main objective of this scheme is to provide economic security to the farmers and empower the agriculture sector.

Subsidy on DAP fertilizer: Prices stable

1. Big relief for farmers:

• The price of DAP (di-ammonium phosphate) fertilizer has been kept stable at ₹1,350 for a 50 kg bag.
• Its actual cost is around ₹3,000, with the remaining expense to be borne by the government.

2. Special package of subsidies:

• To provide relief to farmers, the government has approved a special package of ₹3,850 crore.
• This step will prevent the burden of rising fertilizer prices in the global market from falling on farmers.

Incorporation of technological innovations

Maximum use of modern technology will be made in the Prime Minister Crop Insurance Scheme.

• Technologies like Yes-Tech and Winds:
  This will make assessment of crops and settlement of insurance claims faster and transparent.
• FIAT treasury:
  A fund of ₹824.77 crore has been created, which will promote technological research and development.
• This step will provide farmers the benefit of quick claims and improve the effectiveness of the scheme.

Government’s commitment on DAP subsidy

• No effect of global fluctuations:
  The government has ensured that the burden of changes in global prices of DAP does not fall on Indian farmers.
• Relief despite geopolitical crises:
  Despite the insecurity of sea routes like the Red Sea and the volatility of the global market, fertilizers will be provided to farmers at affordable rates.

Efforts for relief to farmers from 2014 till now

• Since 2014, the government has doubled the fertilizer subsidy to ₹1.9 lakh crore.
• Even during the Covid pandemic and geopolitical crises, farmers were not allowed to face any inconvenience.

Big benefits for agriculture sector

• The government has taken this step to increase the income of farmers and strengthen the agriculture sector.
• The decisions taken under Pradhan Mantri Fasal Bima Yojana and DAP subsidy will act as economic relief and inspiration for the farmers.