Digital News Guru Current Affairs Desk:
Cabinet Extends Crop Insurance Schemes to 2025-26: A Boost for Farmer Welfare
In a significant move to bolster agricultural resilience and support Indian farmers, the Union Cabinet, led by Prime Minister Narendra Modi, has approved the continuation of two flagship crop insurance schemes. The Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) will now be extended until the fiscal year 2025-26.
This decision, announced on January 1, 2025, includes a substantial allocation of 69,515.71 crore for the period 2021-22 to 2025-26 and underscores the government’s commitment to safeguarding the livelihoods of farmers against unpredictable risks.
Continuing the Fight Against Uncertainty
The PMFBY and RWBCIS have played pivotal roles in providing financial protection to farmers against crop losses caused by unforeseen natural calamities, pests, and diseases. Introduced in 2016, these schemes aim to stabilize farmers’ incomes, encourage them to adopt modern agricultural practices, and ensure credit flow to the agriculture sector. The Cabinet’s decision to extend these schemes is seen as a reaffirmation of the government’s dedication to securing the agricultural economy and promoting sustainable farming practices.
Prime Minister Narendra Modi remarked, “Ours is a government fully committed to furthering the welfare of farmers. We are proud of all our farmer sisters and brothers who work hard to feed our nation. The first Cabinet decision of 2025 is dedicated to enhancing prosperity for our farmers.”
Key Features of the Schemes
- Comprehensive Coverage:
PMFBY and RWBCIS provide insurance coverage for pre-sowing, post-harvest losses, and losses due to adverse weather conditions during the cropping cycle. - Affordable Premiums:
Farmers pay only 1.5% to 5% of the sum insured, while the remaining premium is subsidized by the central and state governments. - Wide Reach:
Over the years, the schemes have benefited millions of farmers, including small and marginal farmers, ensuring coverage across India’s diverse agro-climatic zones.
Fund for Innovation and Technology
As part of the extension, the government has introduced a Fund for Innovation and Technology (FIAT) with a corpus of 824.77 crore. This fund aims to integrate advanced technologies into the implementation of crop insurance schemes to enhance transparency and efficiency. Key technological initiatives include:
- Remote Sensing and Drone Technology:
These tools will be used for faster crop loss assessments and real-time monitoring of claims. - Advanced Data Analytics:
Leveraging data analytics to accurately predict crop damage and streamline the claim settlement process. - Mobile Apps and Digital Platforms:
Expanding farmer accessibility to insurance services through digital tools, making enrollment and claim filing more user-friendly.
The fund will also support research and development in weather-based modeling and technology integration, ensuring that the schemes adapt to evolving agricultural challenges.
A Step Toward Farmer Prosperity
Agriculture remains the backbone of India’s economy, employing nearly 50% of the workforce and contributing significantly to GDP. However, the sector is highly vulnerable to the impacts of climate change, fluctuating market prices, and natural disasters. Crop insurance schemes like PMFBY and RWBCIS have emerged as crucial safeguards, providing a safety net for farmers.
The government’s focus on technology-driven solutions is expected to address some of the key challenges faced by these schemes, such as delays in claim settlements and lack of awareness among farmers. By making the schemes more transparent and efficient, the Cabinet’s decision is expected to encourage greater farmer participation and trust.
Additional Measures for Agricultural Support
In a related move, the Union Cabinet also approved a one-time special package to subsidize the cost of Di-Ammonium Phosphate (DAP) fertilizers. This subsidy ensures that fertilizers remain affordable for farmers, reducing their input costs and further supporting agricultural productivity.
These decisions come at a time when the government is actively pursuing policies to modernize agriculture, improve productivity, and ensure food security. The continuation of crop insurance schemes and the introduction of complementary measures reflect a holistic approach to addressing the challenges faced by the sector.
Challenges and Opportunities
Despite their benefits, crop insurance schemes have faced criticism over implementation issues, including delays in claim processing, inadequate coverage, and discrepancies in crop loss assessments. The establishment of the FIAT fund and the adoption of advanced technologies aim to address these challenges and enhance the schemes’ overall effectiveness.
Moreover, the success of these schemes depends on effective collaboration between central and state governments, insurers, and stakeholders. Timely disbursement of funds, accurate crop loss assessments, and widespread awareness campaigns are essential to maximizing their impact.
Public Reaction and Farmer Response
The extension of PMFBY and RWBCIS has been welcomed by farmers and agricultural experts. Many see it as a much-needed measure to provide financial stability in a sector fraught with uncertainties. Social media platforms have been abuzz with discussions on the government’s proactive approach, with farmers expressing hope that technological advancements will simplify processes and ensure timely assistance.
Looking Ahead
As India moves toward achieving its goal of doubling farmers’ incomes, the continuation of crop insurance schemes is a critical step in ensuring agricultural sustainability. By leveraging technology, improving implementation, and addressing systemic challenges, the government aims to create a robust safety net for farmers.
Conclusion
The Union Cabinet’s decision to extend the PMFBY and RWBCIS schemes until 2025-26 underscores its commitment to empowering farmers and strengthening India’s agricultural sector. With a significant financial outlay and the introduction of innovative technological tools, these schemes promise to offer comprehensive risk coverage and instill confidence in farmers to embrace modern agricultural practices.
As the schemes evolve to address emerging challenges, their success will depend on seamless execution, transparency, and farmer participation. The government’s focus on ensuring financial security for farmers not only safeguards their livelihoods but also reinforces the foundation of a self-reliant and resilient agricultural economy.
You May Also Read: Devastating Fire in Kullu’s Banjar Valley: 20 Homes Destroyed, 100 Displaced, Losses Estimated at 5 Crore
