Cabinet approves modifications to PMFBY and RWBCIS, ₹824.77 crore fund for innovation & technology
The schemes aim to provide risk coverage for crops against non-preventable natural calamities, with a total outlay of ₹69,515.71 crore from 2021-22 to 2025-26.
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The Union Cabinet chaired by Prime Minister Narendra Modi today approved the continuation of the Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of Rs.69,515.71 Crore from 2021-22 to 2025-26. The decision will help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26.
To enhance transparency and efficiency, the Cabinet also approved the creation of a ₹824.77 crore Fund for Innovation and Technology (FIAT). This fund will support technological initiatives like the Yield Estimation System using Technology (YES-TECH) and Weather Information and Network Data Systems (WINDS).
Technological Advancements in Crop Insurance
- YES-TECH: Utilizes remote sensing technology for yield estimation, incorporating a minimum 30% weightage for technology-based assessments. It is currently implemented in nine major states, including Madhya Pradesh, which has adopted 100% technology-based yield estimation.
- WINDS: Plans to set up Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level, increasing weather data density fivefold. The initiative will commence in 2024-25, with a 90:10 central-state funding ratio to support states like Kerala, Uttar Pradesh, and Rajasthan.
Focus on North Eastern States
The government aims to prioritize farmers in North Eastern states, offering a 90% premium subsidy for crop insurance. Flexibility has been introduced to reallocate unused funds to other developmental projects due to low-cropped areas and voluntary participation in these regions.
These initiatives reflect the government's commitment to empowering farmers with robust insurance mechanisms and advanced technology, ensuring resilience against climate-related risks.
First decision in the new year dedicated to farmers: PM Modi
Prime Minister Narendra Modi said that the government's first decision in the New Year is dedicated to farmers, as the Union Cabinet headed by him enhanced allocation to crop insurance scheme and raised subsidy to a key fertiliser. He said on X, "(Govt's) first decision of the New Near is dedicated to crores of farmer brothers and sisters of our country. We have approved increasing the allocation for crop insurance scheme. This will provide more security to farmers' crops and will also mitigate their concerns about any damage." The Cabinet's decision on extending the one-time special package on Di-Ammonium Phosphate (DAP) will help farmers by ensuring the fertiliser at affordable prices, he added.
