Government Bolsters Crop Insurance Schemes with Extended Tenure and Tech Infusion

The Indian government has extended two key crop insurance schemes, PMFBY and RWBCIS, through 2025-26, while earmarking a fund of Rs 824.77 crore for tech integration. The schemes aim to provide financial support to farmers, leveraging technology for rapid damage assessment and streamlined claim settlement.

The Indian government's Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the extension of two crop insurance schemes—Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS)—until 2025-26. The decision aligns the schemes with the 15th Finance Commission period, aiming to enhance support to farmers.

Information and Broadcasting Minister Ashwini Vaishnaw announced a separate fund of Rs 824.77 crore for technology infusion within these programs. This fund, known as the Fund for Innovation and Technology (FIAT), will drive technological advancements like YES-TECH and WINDS for yield estimation and hyper-local weather data, respectively.

The total financial outlay for these insurance schemes is increased to Rs 69,515.71 crore, with a focus on technological solutions to improve claim settlements and reduce disputes. Nine states are currently rolling out these initiatives, with more states expected to join. The schemes aim to mitigate crop and weather-related risks for farmers.

(With inputs from agencies.)