Govt Announces New Subsidy and Insurance Initiatives for Farmers

January 2, 2025

The Union Cabinet of India has recently announced measures to support farmers. These initiatives include a one-time special subsidy for Diammonium Phosphate (DAP) fertiliser and the continuation of crop insurance schemes. The government aims to ensure affordable access to DAP and provide risk coverage against natural calamities for farmers.

Special Subsidy for DAP Fertiliser

The Cabinet has extended the DAP subsidy at ₹3,500 per metric tonne. This subsidy will remain in effect from January 1, 2025, until further notice. The government plans to allocate approximately ₹3,850 crore for this special package. This initiative aims to maintain the availability of DAP at reasonable prices for farmers during the Kharif and Rabi seasons of 2024-25.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

The PMFBY will continue until the financial year 2025-26. The total allocation for this scheme is ₹69,515.71 crore. This insurance scheme provides risk coverage to farmers for losses caused by natural disasters. It has benefitted approximately four crore farmers, with 88% being small and marginal farmers.

Restructured Weather Based Crop Insurance Scheme (RWBCIS)

The RWBCIS will also remain operational until 2025-26. This scheme is designed to offer insurance based on weather conditions, protecting farmers from adverse climatic events. The government’s focus is on integrating technology to streamline claims processing and farmer enrolment.

Fund for Innovation and Technology (FIAT)

The Cabinet has approved the establishment of FIAT with an allocation of ₹824.77 crore. This fund will support technological advancements in insurance schemes. The aim is to enhance efficiency in the insurance sector, ensuring quicker claim settlements.

Weather Information and Network Data System (WINDS)

In 2024-25, the WINDS will be implemented to improve weather data collection. This initiative involves the installation of automatic weather stations. The goal is to provide accurate weather information to aid farmers in decision-making.

Memorandum of About on Rice Trade

The Cabinet has approved a MoU for the trade of Non-Basmati White Rice (NBWR) between India and Indonesia. This agreement allows for the trading of one million metric tonnes of rice annually. The trade will depend on production levels and international market prices.

FIAT aims to modernise agricultural insurance technology.
PMFBY has disbursed ₹1.7 trillion in insurance payouts over eight years.
90% of premium subsidy is shared in the northeastern states.
The DAP subsidy ensures stable pricing despite global market volatility.
WINDS will enhance the accuracy of weather predictions for farmers.

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