Prime Minister Narendra Modi today announced a significant increase in the government’s commitment to supporting farmers through enhanced crop insurance. The Cabinet approved a proposal to continue the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) until 2025-26 with an overall budget of Rs 69,515.71 crore.

In a tweet, Prime Minister Modi dedicated this decision to the country’s farmers, highlighting that the increased allocation would not only improve crop safety but also reduce farmers’ concerns over potential losses due to natural calamities. “The first decision of the new year is dedicated to our country’s farmers. We have approved the increased allocation for crop insurance, which will further safeguard their crops and reduce their worries about losses,” Modi tweeted, sharing the press release from the Government of India.

The initiative, which covers the risk of crop loss from unavoidable natural disasters, will benefit farmers nationwide. In addition to the increased funding, the Cabinet also approved the establishment of a Fund for Innovation and Technology (FIAT) with a corpus of Rs 824.77 crore. This fund will be used to implement technological advancements such as the YES-TECH and WINDS programs, aimed at improving transparency, claim calculations, and settlement processes.

Key features of the new initiative

1. PMFBY and RWBCIS Continuation: The schemes, which aim to provide financial support to farmers affected by natural calamities, will run until 2025-26.
2. Technological Infusion: The government will invest in cutting-edge technologies to enhance the accuracy of yield estimates and the speed of claims settlement. YES-TECH, for example, uses Remote Sensing Technology for yield estimation with a focus on a minimum 30% weightage based on technology. Currently, nine states, including Uttar Pradesh, Maharashtra, and Tamil Nadu, are implementing YES-TECH.
3. Weather-based Data Systems: The WINDS initiative aims to expand the network of weather stations to provide hyper-local weather data crucial for farmers. Automatic Weather Stations (AWS) will be installed at the block level, and Automatic Rain Gauges (ARG) will be set up at the panchayat level. This initiative is currently being implemented in nine major states, including Kerala and Karnataka.
4. North Eastern States Priority: The center will continue to prioritize farmers in the North Eastern states, offering a 90% subsidy on premium costs. However, due to the voluntary nature of the scheme and low gross cropped area, the states will have flexibility in reallocating funds for other developmental projects.

Impact on Farmers

This move is expected to provide relief to farmers dealing with unpredictable weather conditions and natural disasters. The infusion of technology is expected to streamline claims processes, making them more efficient and transparent. Moreover, the central government’s support through premium subsidies will ensure wider coverage for farmers, particularly in regions like the North East, where agricultural challenges are more pronounced.

The initiative also aims to address the needs of farmers in rural areas who may have limited access to traditional insurance schemes. By providing a more accessible and reliable system, the government aims to mitigate the financial risks that farmers face, allowing them to focus on productivity rather than the unpredictability of weather and natural calamities.

This announcement is part of the government’s broader efforts to ensure that farmers remain financially protected against the increasing challenges posed by climate change and other environmental factors.

The scheme’s wider implementation across the country reflects the government’s ongoing commitment to supporting agriculture and rural economies.

For more information, check the official press release here.