NEW DELHI: In a new year gift to the farmers, the NDA govt on Wednesday extended the crop insurance scheme by a year, enhancing its outlay for five years to Rs 69,515 crore, while also approving the Rs 825-crore Fund for Innovation and Technology (FIAT).
In addition, to ensure that farmers get soil nutrients at existing rates, the Union cabinet also gave go ahead to a one-time special subsidy of up to Rs 3,850 crore for Di-Ammonium Phosphate (DAP). Later in the day, Union agriculture minister Shivraj Singh Chouhan announced that the Centre had approved an MoU for export of 10 lakh tonnes of non-basmati rice to Indonesia through the National Cooperative Export Ltd (NCEL). Rice in FCI warehouses, which is way beyond the prescribed limits, will be exported.
Soon after the announcement, PM Narendra Modi said the govt’s first decision in the new year is dedicated to farmers. “Ours is a govt 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 of 2025 is dedicated to enhancing prosperity for our farmers. I am glad that key decisions have been taken in this regard,” Modi said on X.
The Prime Minister said increased allocation for crop insurance will provide more security to crops and will also mitigate concerns of farmers regarding any damage. The scheme was launched in Kharif 2016 and will now extend up to the next fiscal year.
Modi added that the decision to extend the one-time special package on DAP will help farmers by ensuring the fertiliser at affordable prices.
Information and broadcasting minister Ashwini Vaishnaw told reporters that farmers will continue to get DAP at Rs 1,350 per bag and the extra burden will be borne by the Centre, with no additional burden on farmers.
Asked about the farmers’ agitation in Punjab and why the govt is unable to convince them, Vaishnaw said, “If you would have moved around during Haryana elections, farmers gave great feedback on ‘andolan’ versus real welfare versus ‘good to farmers’, you would have seen yourself.”
Officials said the enhanced allocation for crop insurance will help expand risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26 through the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS). The new FIAT will be used for large-scale technology infusion in implementation of the schemes, leading to increasing transparency, and claim calculation and settlement.
