In a significant move aimed at furthering the welfare of farmers, the Indian government has extended two crucial agricultural initiatives: the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme, both of which have now been approved for continuation until 2025-26. The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, made this announcement in the first meeting of the year on January 1, 2025. The total outlay allocated for these programs over the next five years is a substantial ₹69,515.71 crore, ensuring better financial support for farmers facing risks from natural calamities.
A Boost to Crop Insurance
The government’s move to extend the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme is a critical step toward securing the financial stability of farmers across the country. With an overall budget of ₹69,515.71 crore for the period 2021-2026, these schemes are designed to provide crop insurance to safeguard farmers against non-preventable natural disasters such as droughts, floods, and unseasonal weather patterns.
As India’s agriculture sector remains highly vulnerable to the impacts of unpredictable weather, crop insurance is a vital tool to protect farmers’ livelihoods. By continuing these schemes, the government aims to mitigate the risks associated with crop failure, thereby ensuring that farmers are not left helpless in times of calamities. The move reflects a long-term commitment to supporting farmers and enhancing agricultural resilience across the country.
Ours is a Government fully committed to furthering welfare of farmers. We are proud of all our farmer sisters and brothers who work hard to feed our nation. The first Cabinet of 2025 is dedicated to enhancing prosperity for our farmers. I am glad that key decisions have been…
— Narendra Modi (@narendramodi) January 1, 2025Fund for Innovation and Technology (FIAT)
In line with its goal of modernizing agricultural practices, the government has also approved the creation of a Fund for Innovation and Technology (FIAT) with a corpus of ₹824.77 crore. The fund aims to integrate advanced technology into the implementation of crop insurance schemes. By leveraging modern tech tools, the government hopes to improve transparency, streamline the claim process, and expedite settlements. This will make the system more efficient and reliable for farmers who depend on these insurance schemes during adverse conditions.
Technological innovations such as the Weather Information and Network Data System (WINDS) will play a crucial role in gathering precise weather data to enhance decision-making. Currently, nine states, including Andhra Pradesh, Assam, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Karnataka, have adopted this system. The government intends to extend it to more regions to strengthen the insurance framework and ensure that it caters effectively to the needs of farmers across the country.
Special DAP Fertilizer Package for Farmers
Alongside crop insurance, the government has also made strides to ensure that fertilizers remain affordable for farmers, particularly Di-Ammonium Phosphate (DAP), a critical component in enhancing soil fertility and boosting crop yields. On January 1, 2025, the government approved the continuation of a special one-time package for DAP fertiliser. This package will keep the price of DAP at ₹1,350 per 50 kg bag, ensuring its continued affordability for farmers in the upcoming Kharif and Rabi seasons.
The global prices of DAP have been volatile, influenced by geopolitical factors and market fluctuations. To shield Indian farmers from these price hikes, the government has extended an additional subsidy on DAP fertilizer, which is expected to cost ₹3,850 crore. This special package is aimed at maintaining the retail price of DAP at a subsidized rate, despite the rising international costs. Since 2014, the Indian government has been committed to ensuring that fertilizer prices do not become a barrier for farmers, with a total subsidy of ₹11.9 lakh crore for the period 2014-2024.
The Union Cabinet, chaired by Hon'ble PM Shri @narendramodi Ji, has approved the extension of the one-time special package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy, providing a subsidy of ₹3,500 per metric ton, effective from 01.01.2025 until further orders.
This… pic.twitter.com/sXkHg5eYsA
— Mohan Charan Majhi (@MohanMOdisha) January 1, 2025Ensuring Affordable Fertilizer for All
The extended DAP package is part of a broader initiative to provide subsidized fertilizers to farmers. The Nutrient-Based Subsidy (NBS) scheme, which governs the prices of phosphatic and potassic (P&K) fertilizers, has been a cornerstone of the government’s efforts to keep agricultural inputs affordable. Through this scheme, 28 grades of fertilizers are made available to farmers at subsidized prices, helping them maintain soil health and improve productivity.
The government’s focus on affordable fertilizer availability is essential for India, where agriculture is the backbone of the economy and sustains millions of livelihoods. By managing fertilizer prices through subsidies, the government ensures that farmers have access to critical inputs without being burdened by market fluctuations. This proactive approach to agricultural pricing and subsidies underscores the government’s dedication to supporting India’s farming community.
Increased Budget for Farmer Welfare
The Union Cabinet’s decision to increase the allocation for the Pradhan Mantri Fasal Bima Yojana (PMFBY) to ₹69,515 crore highlights the government’s increasing focus on the welfare of farmers. Union Minister for Agriculture and Farmers Welfare, Shivraj Singh Chouhan, emphasized that the funds allocated for crop insurance would help farmers get better coverage against natural calamities, providing a safety net for those in distress.
The continuation of these flagship initiatives for another five years represents a significant commitment from the government to protect and support the agricultural community. The introduction of advanced technologies, coupled with financial backing, aims to make crop insurance more efficient and accessible, ensuring that it reaches farmers in need.
Supporting Sustainable Farming Practices
The government’s focus on farmer welfare is not just about immediate financial relief but also about creating a sustainable and prosperous agricultural ecosystem. By enhancing crop insurance schemes and ensuring the availability of affordable fertilizers, the government is laying the foundation for a more resilient agricultural sector. These measures will help farmers cope with the growing challenges posed by climate change, market volatility, and other unpredictable factors.
Through such initiatives, the government is reinforcing its commitment to farmers, who play a pivotal role in feeding the nation. The decisions made in the first Cabinet meeting of 2025 underscore the administration’s dedication to improving the agricultural sector, ensuring that farmers are equipped with the tools they need to succeed and thrive in an ever-changing global landscape.
On the first day of the new year, the central government, under the leadership of Prime Minister @narendramodi ji, made several significant decisions during a cabinet meeting. Approval was granted to extend the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured… pic.twitter.com/wV2qtvAvE6
— Agnimitra Paul BJP (@paulagnimitra1) January 1, 2025The Indian government’s extended support through the continuation of crop insurance schemes and the special DAP fertiliser package is a crucial step toward strengthening the agricultural sector. With a focus on financial protection, technology integration, and affordable inputs, the government aims to ensure the long-term sustainability of farming in India. These decisions are not just about immediate relief but are part of a broader vision to secure the future of Indian agriculture and the prosperity of its farmers.
