PM-headed CCEA clears proposals
NEW DELHI, Jan 1: The Union Cabinet today extended a one-time package to subsidise key fertiliser DAP at the cost of up to Rs 3,850 crore and approved a one-year extension of two crop insurance schemes, decisions that Prime Minister Narendra Modi said were dedicated to farmers.
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The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, extended two crop Insurance schemes — PMFBY and RWBCIS — for one more year till 2025-26 and created a separate Rs 824.77 crore fund for technology infusion in the implementation of flagship schemes.
Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) have been extended to align it with the 15th Finance Commission period.
The total outlay for PMFBY and RWBCI has been enhanced to Rs 69,515.71 crore for 2021-22 to 2025-26, higher from Rs 66,550 crore for 2020-21 to 2024-25.
In another big decision, the Union Cabinet extended an additional subsidy on di-ammonium phosphate (DAP) beyond December 31, 2024, to help maintain retail prices of this key fertiliser at Rs 1,350 per bag of 50 kg.
Last year, the Centre announced a one-time special package on DAP at Rs 3,500 per tonne, valid from April 1, 2024, to December 31, 2024, with a financial implication of Rs 2,625 crore to keep prices under check. The package was over and above the nutrient-based subsidy (NBS) fixed by the Government on non-urea nutrients.
The Cabinet also approved the proposal for an extension of a one-time special package on DAP at the rate of Rs 3,500 per tonne for the period from January 1, 2025, till further orders.
On social media platform X, the Prime Minister said, “(Govt’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 will also mitigate their concerns about any damage”.
The Cabinet’s decision to extend the one-time special package on Di-Ammonium Phosphate (DAP) will help farmers by ensuring the fertiliser at affordable prices, he added.
Briefing media, Information and Broadcasting (I&B) Minister Ashwini Vaishnaw informed that farmers will continue to get DAP at Rs 1,350 per bag and the extra burden will be borne by the central government.
“One-time special package up to Rs 3,850 crore is approved for DAP fertiliser,” he added.
Asked about the ongoing farmer agitation in Punjab and why the government is unable to convince them, Vaishnaw said, “If you would have moved around during Haryana elections, farmers gave great feedback on ‘Andolan’ versus real welfare versus ‘good to farmers’, you would have yourself seen”.
The special package on DAP will be provided over and above the approved NBS (nutrient-based subsidy) to ensure the smooth availability of DAP fertiliser to the farmers at an affordable price.
The Centre provides 28 grades of P&K (phosphatic and potassic) nutrients to farmers at subsidised prices through fertiliser manufacturers/importers.
The subsidy on P&K fertilisers is governed by the NBS Scheme, with effect from April 1, 2010.
“Continuing top most priority in keeping farmers’ welfare in firm focus, Government of India has extended a massive relief to farmers in keeping the price of DAP fertiliser unchanged,” the statement said.
In spite of geopolitical constraints and volatility of global market conditions, the government said it has ensured the availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25.
The Centre has provided Rs 11.9 lakh crore fertiliser subsidy during the 2014-24 period, which is more than double the subsidy of Rs 5.5 lakh crore during 2004-14.
For the targeted infusion of technology in the implementation of the crop insurance schemes, the minister said the Cabinet also approved the creation of a separate Fund for Innovation and Technology (FIAT) with a corpus of Rs 824.77 crore.
It will help in the use of technology for faster assessment of crop damage, claim settlement and lesser disputes. It will also help in using digital technologies for easier enrolment and greater coverage, Vaishnaw said.
In terms of policies issued, the PMFBY is the country’s largest insurance scheme and third-largest in terms of total premiums. About 23 states and Union territories are implementing it.
PMFBY and RWBCIS offer financial assistance to farmers suffering from crop loss or damage caused by various unforeseen events. PMFBY covers crop losses based on yield risk, while RWBCIS focuses on weather-related risks. (PTI)
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