Centre enhances crop insurance allocation and fertiliser subsidy to support farmers

The government's first major decision of 2025 is aimed at bolstering support for farmers, announcing an increased allocation for crop insurance and a substantial raise in fertiliser subsidies. The outlay for crop risk coverage until 2025-26 stands at Rs 69,515.71 crore.

Key Highlights:

Increased Crop Insurance Allocation: The Union Cabinet, led by Prime Minister Narendra Modi, has approved enhanced funding for the crop insurance scheme. This move is intended to provide greater security to farmers' crops and alleviate concerns about potential damage.

Extension of Fertiliser Subsidy: The Cabinet has also extended a one-time special package for Di-Ammonium Phosphate (DAP) fertiliser, ensuring its availability at affordable prices for farmers.

Prime Minister Modi shared on X, "The government's first decision of the New Year is dedicated to crores of farmer brothers and sisters of our country. We have approved increasing the allocation for the crop insurance scheme. This will provide more security to farmers' crops and mitigate their concerns about any damage."

Cabinet Decisions:

Pradhan Mantri Fasal Bima Yojana (PMFBY): The Cabinet approved the continuation of the 'Pradhan Mantri Fasal Bima Yojana' and the Restructured Weather Based Crop Insurance Scheme until 2025-26. The total outlay for these schemes from 2021-22 to 2025-26 is Rs 69,515.71 crore. This decision aims to cover the risk of crops from non-preventable natural calamities across the country.

Fertiliser Subsidy: The Cabinet also approved the extension of the one-time special package for DAP fertiliser beyond the Nutrient Based Subsidy (NBS) at Rs 3,500 per MT, effective from January 1, 2025. This is to ensure the sustainable availability of DAP at affordable prices. The tentative budgetary requirement for this extension is approximately Rs 3,850 crore.

These decisions mark a significant step by the government to support and secure the interests of farmers, ensuring they have access to necessary resources and protections against crop loss.