Crop Insurance Schemes for Indian Farmers

The Union Cabinet of India has introduced several initiatives aimed at bolstering the agricultural sector. These measures include a special subsidy for Diammonium Phosphate (DAP) fertiliser and the continuation of crop insurance schemes. The objective is to ensure cost-effective access to DAP and safeguard farmers against natural calamities.

Special DAP Fertiliser Subsidy

The government has announced a subsidy of ₹3,500 per metric tonne for DAP fertiliser. This subsidy will be effective from January 1, 2025, and remain in place until further notice. To support this initiative, ₹3,850 crore has been allocated. The subsidy ensures farmers can access DAP at affordable rates during the Kharif and Rabi cropping seasons of 2024-25.

Crop Insurance Schemes: PMFBY and RWBCIS

1. Pradhan Mantri Fasal Bima Yojana (PMFBY)
   • Extended until FY 2025-26 with a budget of ₹69,515.71 crore.
   • Provides risk coverage against natural disasters.
   • Benefited over four crore farmers, 88% of whom are small and marginal.
2. Restructured Weather-Based Crop Insurance Scheme (RWBCIS)
   • Also extended until 2025-26.
   • Offers weather-based insurance to shield farmers from adverse climatic events.
   • Focuses on integrating technology for efficient claims and enrolments.

Technological Advancements in Agriculture Insurance

• Fund for Innovation and Technology (FIAT):
  A new fund of ₹824.77 crore will drive technological improvements in insurance schemes, ensuring faster claim settlements and greater efficiency.
• Weather Information and Network Data System (WINDS):
  Scheduled for implementation in 2024-25, this initiative involves installing automatic weather stations to enhance weather data accuracy, aiding farmers in making informed decisions.

Boost to Rice Trade

The Cabinet has approved a Memorandum of Understanding (MoU) with Indonesia for trading Non-Basmati White Rice (NBWR). Under this agreement, India will export up to one million metric tonnes annually, subject to production levels and global market conditions.

These measures underscore the government’s commitment to empowering farmers through financial support, technological integration, and expanded trade opportunities.