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First 2025 Cabinet Approves Rs 69,515 Crore for Crop Insurance, Extends DAP Subsidy to Aid Farmers

Jan 1, 2025, 10:53 AM

In its first Cabinet meeting of 2025, dedicated to farmers, the Indian government led by Prime Minister Narendra Modi approved the continuation and enhancement of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) until 2025-26, allocating Rs 69,515.71 crore. These schemes aim to provide comprehensive crop insurance coverage to over four crore farmers, mitigating risks from natural calamities and ensuring their financial security. Union Minister Ashwini Vaishnaw, who conducted the Cabinet briefing, announced that a Fund for Innovation and Technology (FIAT) with an allocation of Rs 800 crore has been created to support large-scale technology infusion in agriculture for faster assessment, quicker claim settlements, and reduced disputes. Additionally, the Cabinet approved the extension of a one-time special package for Di-Ammonium Phosphate (DAP) fertilizers beyond the Nutrient-Based Subsidy (NBS), allocating up to Rs 3,850 crore to ensure farmers continue to receive DAP at the affordable price of Rs 1,350 per 50 kg bag, despite higher international prices. This subsidy, set at Rs 3,500 per metric ton, will be extended until further orders to ensure sustainable availability of DAP fertilizers. Prime Minister Modi emphasized the government's commitment to furthering the welfare of farmers, stating that these decisions will enhance prosperity and reduce farmers' concerns over crop losses.