New Delhi, 01 Jan 2024 | Nirmesh Singh

In a significant move to bolster the agricultural sector, Prime Minister Narendra Modi announced that the Union Cabinet’s first decision of the New Year is dedicated to the welfare of farmers. The Cabinet approved enhanced allocations for the Pradhan Mantri Fasal Bima Yojana (PMFBY), a restructured crop insurance scheme, and extended subsidies for a key fertiliser, Di-Ammonium Phosphate (DAP).

He said on X, “Ours is a government fully committed to furthering welfare of farmers. We are proud of all our farmer sisters and brothers who work hard to feed our nation. The first Cabinet of 2025 is dedicated to enhancing prosperity for our farmers. I am glad that key decisions have been taken in this regard.”

Agriculture Minister Shivraj Singh Chouhan said, “The country’s agriculture and allied sector is expected to grow at 3.5-4 per cent in 2024-25, marking a significant improvement from the 1.4 per cent rise recorded in FY24”.

Key Decisions for Farmers

1. Enhanced Crop Insurance Scheme
   The Cabinet has approved the continuation of the PMFBY and Restructured Weather Based Crop Insurance Scheme until 2025-26. With an overall outlay of ₹69,515.71 crore for the period 2021-22 to 2025-26, the scheme will ensure risk coverage for crops against non-preventable natural calamities across India.

Notable enhancements include:

• Establishment of a ₹824.77 crore Fund for Innovation and Technology (FIAT) to modernize insurance schemes.
• Launch of the Yield Estimation System using Technology (YES-TECH) for crop yield assessment.
• Development of the Weather Information and Network Data System (WINDS) to improve weather data accuracy through automatic weather stations.

Implementation of WINDS will begin in 2024-25 to assist state governments with weather-related insights.

2. Extended Subsidy for DAP
   
   To ensure the continued affordability of Di-Ammonium Phosphate, the Cabinet approved an extension of the one-time special package on DAP under the Nutrient Based Subsidy (NBS) scheme.

• The extended subsidy will last until December 31, 2025, with a tentative budgetary requirement of ₹3,850 crore for 2025.
• Payments will be made from the NBS Scheme budget based on actual sales of DAP at points of sale.

3. Strengthened India-Indonesia Trade Relations
   
   The Cabinet also approved a Memorandum of Understanding (MoU) between India’s Ministry of Cooperation and Indonesia’s Ministry of Trade for the annual trade of one million metric tonnes of Non-Basmati White Rice (NBWR).

• The MoU will last four years, with automatic extension for another four years.
• Trade operations will be conducted through the National Cooperative Exports Limited (NCEL), ensuring transparency and minimal market disruption.

This agreement is expected to address trade imbalances and enhance bilateral relations between the two countries.
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