The Union Cabinet chaired by the Prime Minister(PM) Narendra Modi has given approvals to various schemes and projects on 1st January 2025.
The approvals are as follows,
- Continuation of Pradhan Mantri Fasal Bima Yojana(PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) till 2025-26.
- Setting up a Fund for Innovation and Technology(FIAT).
- Extension of One-time Special Package on Di-Ammonium Phosphate (DAP)
- MoU on trade of Non-Basmati White Rice (NBWR) between India and Indonesia
Cabinet has approved the continuation of PMFBY And RWBCIS till 2025-26
The Union Cabinet chaired by the PM Modi has approved to continue the Pradhan Mantri Fasal Bima Yojana(PMFBY) and Restructured Weather Based Crop Insurance Scheme(RWBCIS) till 2025-26 with an overall outlay of Rs.69,515.71 Crore from 2021-22 to 2025-26.
- The continuation of the schemes will provide the risk coverage of crops from unavoidable natural disasters for farmers till 2025-26.
About Pradhan Mantri Fasal Bima Yojana(PMFBY):
The PMFBY scheme was launched in 2016 with an aim to provide affordable risk coverage for the crops to the farmers in case of crop failure.
- It is monitored by the Department of Agriculture, Cooperation & Farmers Welfare(DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW) and the concerned State in co-ordination with various other agencies.
- Objective: ‘One Nation, One Crop, One Premium’
Risks covered:
i.Cover yields losses from non-preventable risks, such as natural fire and lightning storms, hailstorms, cyclones, typhoons, tempest, hurricanes, tornados, etc.
ii.The farmers of a notified area, willing to sow/plant crops are prevented from sowing/planting due to bad weather conditions, will be provided with claims upto a maximum of 25% of the sum insured.
iii.Insurance is provided upto a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting.
iv.Insurance against localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.
Premium Rate:
| Season | Crops | Maximum Insurance charges payable by the farmer (% of Sum Insured, SI) |
|---|---|---|
| Kharif | Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) | 2.0% of SI or Actuarial rate, whichever is less |
| Rabi | Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) | 1.5% of SI or Actuarial rate, whichever is less |
| Kharif & Rabi | Annual Commercial / Annual Horticultural crops | 5% of SI or Actuarial rate, whichever is less |
Note: The remaining premium is shared between the central and state governments. In the ratio of 50:50 in normal states and 90:10 in the case of north-eastern.
Exclusions:
Losses due to war and related dangers, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals and harvested crop bundled and heaped at a place before threshing in case of post-harvest losses.
Cabinet approves setting up of the FIAT:
The Union Cabinet has approved creation of Fund for Innovation and Technology(FIAT) with an outlay of Rs.824.77 crore for integration of advanced technologies in insurance schemes.
- The fund will be used to make technological improvements in schemes like, YES-TECH, WINDS, etc as well as Research and Development studies.
Key Facts:
i.Yield Estimation System using Technology (YES-TECH) uses Remote Sensing Technology for estimating yields which have minimum 30% weightage to Technology based yield estimates.
- Madhya Pradesh(MP) has adopted 100% technology based yield estimation.
- Andhra Pradesh(AP), Assam, Haryana, Uttar Pradesh(UP), MP, Maharashtra, Odisha, Tamil Nadu(TN) and Karnataka are currently implementing it.
ii.Weather Information and Network Data Systems (WINDS) involves setting up of Automatic Weather Stations (AWS) at block level and Automatic Rain Gauges (ARGs) at panchayat level.
- Implementation of WINDS to assist state governments will begin in 2024-25.
Cabinet Approves Extension of Special Package for DAP Subsidy:
The Union Cabinet, has approved to extend the One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the Nutrient Based Subsidy(NBS) subsidy at Rs 3,500 per metric ton (MT) for the period from 1st January 2025 till further orders to provide DAP to farmers at affordable prices.
- It would be allotted a tentative budget of approximately up to Rs. 3,850 cr.
Note: DAP is one of the most widely used fertilizers globally, providing essential nutrients nitrogen (N) and phosphorus (P) for plant growth.
Key Points:
i.Farmers are provided subsidized prices for 28 grades of Phosphatic and Potassic(P&K) fertilizers through fertilizer manufacturers/importers.
ii.This one-time Special Package was earlier approved from 1st April to 31st December 2024 with an outlay of around Rs 2,625 crore.
Cabinet approves MoU on trade of NBWR between India and Indonesia:
i.The Union Cabinet has approved the signing of Memorandum of Understanding (MoU) between the Ministry of Cooperation(MoC), Government of India(GoI) and the Ministry of Trade, Indonesia with an aim to trade one million metric tons(MT) of Non-Basmati White Rice (NBWR) annually based on production and international prices.
ii.It will last four years and will be automatically extended for an additional four years.
iii.It will be implemented by New Delhi(Delhi) based National Cooperative Exports Limited (NCEL), authorized by the MoC.
- NCEL is a cooperative society established in 2023 under the Multi-State Cooperative Societies Act, 2002.
- The initial paid up capital of NCEL is Rs. 500 Cr with contribution of Rs. 100 Cr each by the five promoters and authorized share capital is Rs. 2,000 Cr.
