New Delhi: In the midst of ongoing farmer protests, the Union government on Wednesday announced extensions for two major crop insurance schemes — Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) — through 2025-26, and unveiled a separate ₹824.77-crore fund for technological innovations in flagship agricultural programmes. It also extended an additional subsidy worth ₹3,850 crore on di-ammonium phosphate (DAP) beyond December 31, 2024.
All these decisions were taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. “The first Cabinet of 2025 is dedicated to enhancing prosperity for our farmers. I am glad key decisions have been taken in this regard,” Modi posted on X.
Announcing the measures, information and broadcasting minister Ashwini Vaishnaw said PMFBY and RWBCIS are aligned with the 15th Finance Commission period. “The schemes received a positive response from farmers, so we have enhanced allocations,” Vaishnaw noted. The total outlay for both schemes is now set at ₹69,515.71 crore for 2021-22 to 2025-26, compared to ₹66,550 crore for the previous five-year period.
PMFBY covers yield-based risks, while RWBCIS addresses weather-related losses. According to Vaishnaw, the Centre has introduced a new Fund for Innovation and Technology (FIAT) with a corpus of ₹824.77 crore to enable faster assessment of crop damage, prompt claim settlement, and broader digital coverage.
The agriculture ministry explained that FIAT will be used for initiatives such as the Yield Estimation System using Technology (YES-TECH), which employs remote sensing for crop yield estimation. Nine major states — Andhra Pradesh, Assam, Haryana, and Uttar Pradesh among them — have already adopted YES-TECH.
The ministry emphasised efforts to prioritise northeastern states by sharing 90 per cent of premium subsidy with them. However, due to the voluntary nature of these schemes and lower gross cropped area in the region, states can reallocate any unused funds.
In another significant move, the Cabinet extended an additional subsidy on DAP beyond December 31, 2024, maintaining the retail price at ₹1,350 per 50 kg bag. This initiative, which may cost the exchequer up to ₹3,850 crore, follows last year’s special package of ₹3,500 per tonne for DAP from April 1, 2024, to December 31, 2024.
“The decision has been taken to ensure sustainable availability of DAP at affordable prices to the farmers,” an official statement said.
Responding to questions about the ongoing farmer unrest, particularly in Punjab, Vaishnaw pointed to positive feedback from farmers regarding the government’s welfare measures. “If you had observed the Haryana elections, you would have seen how farmers differentiated between mere protests and genuine welfare steps,” he asserted.
