On Wednesday, Prime Minister Narendra Modi announced that the government’s first action in the New Year focuses on benefiting farmers. The Union Cabinet, led by Modi, has decided to increase the funding for the crop insurance scheme and raise the subsidy for a vital fertiliser. This decision comes as part of the government’s efforts to enhance the security of farmers’ crops, reducing their concerns about potential damages.
The government approved an extension of the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather-Based Crop Insurance Scheme for the years 2021-2026, with an overall funding allocation of $8.3 billion. This extended coverage will provide protection against natural calamities beyond the farmers’ control. The aim is to continue helping farmers through the end of 2026, ensuring their crops are safeguarded in case of unpredictable weather conditions.
Additionally, the Cabinet decided to extend the one-time special subsidy package for Di-Ammonium Phosphate (DAP), a key fertiliser, beyond the National Budget Subsidy (NBS) at $42.5 per metric ton. This decision guarantees that farmers will continue to have access to affordable DAP during the current period, with a tentative budgetary requirement of up to $460 million.
Prime Minister Modi stated on social media that this decision is specifically intended to provide more security and support to farmers, addressing their worries about crop damage. The government’s strategic move is expected to stabilize the availability of essential fertilisers and continue its ongoing efforts to ensure sustainable agriculture in the country.
