New Delhi, Prime Minister Narendra Modi announced that the Union Cabinet’s first decision of the New Year is dedicated to farmers, focusing on enhancing crop insurance schemes and providing subsidies for essential fertilizers.
In a post on social media platform X, PM Modi stated, “The first decision of the New Year is dedicated to crores of farmer brothers and sisters across our country. We have approved an increase in the allocation for the crop insurance scheme, providing greater security for their crops and reducing their concerns about damage caused by unforeseen events.”
Key Decisions
1. Extension of Crop Insurance Schemes
The Cabinet approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme until 2025-26. With an overall outlay of ₹69,515.71 crore for the period 2021-22 to 2025-26, this extension aims to protect farmers’ crops from non-preventable natural calamities, offering crucial risk coverage across the country.
2. Subsidy for Di-Ammonium Phosphate (DAP)
The government extended a one-time special package on DAP fertilizers beyond the Nutrient-Based Subsidy (NBS) at ₹3,500 per metric tonne. This move ensures the continued availability of DAP at affordable prices for farmers. The tentative budgetary requirement for this initiative is estimated at ₹3,850 crore.
Impact on Farmers
The enhanced budget for crop insurance schemes aims to provide financial relief and peace of mind to farmers dealing with unpredictable climatic conditions and crop damage. Additionally, the extension of subsidies for fertilizers like DAP will ensure sustainable agricultural productivity by making essential inputs more affordable.
This decision aligns with the government’s commitment to strengthening the agricultural sector and addressing the concerns of the farming community in the country.
