In a significant step to boost the morale of the farmers in New Year, the Union Cabinet on Wednesday said the biggest decision taken was the enhancement of the 'Pradhan Mantri Fasal Bima Yojana', which has made a significant difference in the lives of farmers. Union Minister Ashwini Vaishnaw said the allocation has been increased to Rs 69,515 crores. He said given the positive experience so far, the utilisation of the scheme, the response received, and the real changes seen in farmers' lives due to this scheme, the allocation has been increased.
"The first Cabinet meeting of 2025 has been dedicated to the farmers by the Prime Minister. In this first meeting, there were extensive discussions related to farmers, covering various aspects, and the decisions taken today are entirely focussed on the welfare of farmers. This is a culmination of a series of decisions. The biggest decision taken today was the enhancement of the 'Pradhan Mantri Fasal Bima Yojana', which has made a significant difference in the lives of farmers. Its allocation has been increased to Rs 69,515 crores. Given the positive experience so far, the utilisation of the scheme, the response received, and the real changes seen in farmers' lives due to this scheme, the allocation has been increased,” Ashwini Vaishnaw said.
He also stated that the Union Cabinet has approved one-time special package of up to Rs 3,850 crore for DAP fertiliser.
On PM Fasal Bima Yojana, Union Minister Ashwini Vaishnaw said that Rs 800 crore fund for innovation and technology has been created for faster assessment, faster claim settlement, and fewer disputes. “To increase coverage and ease enrollment, PM Narendra Modi has decided to completely digitise the process... The funding pattern for northeast and Himalayan states is 90:10, and 50:50 for Other States... Premium share has been predefined at 1.5% to 5% of insured value... 88% of insured farmers are from marginal backgrounds and 57% of insured farmers are OBC, SC & ST,” he said.
He said the farmers will continue to get DAP at Rs 1,350 per 50 kg bag, which costs more than Rs 3,000 in other countries. “This package will cost about Rs 3,850 crore... Since 2014, PM Modiji has ensured that farmers do not have to bear the brunt of market fluctuations... Fertiliser subsidy from 2014-24 was Rs 11.9 lakh crore which is more than double the subsidy given from 2004-14,” he said.
