Government Extends Fertilizer Subsidy and Crop Insurance to Support Farmers

The Union Cabinet has extended the subsidy for Di-Ammonium Phosphate (DAP) and crop insurance schemes to aid farmers. The package for DAP, costing Rs 3,850 crore, will keep prices stable. Additionally, crop insurance schemes have been extended and expanded in alignment with the 15th Finance Commission period.

The Union Cabinet has announced significant aid measures for farmers, including an extension of subsidies for Di-Ammonium Phosphate (DAP) and crop insurance schemes. This decision ensures the continued affordability of DAP fertilizer at Rs 1,350 per bag, even beyond December 2024, with an added financial burden assumed by the central government.

Prime Minister Narendra Modi emphasized the dedication to farmer welfare as the cabinet approved a substantial increase in funding for the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS). These moves aim to enhance crop security and address damages caused by various risks.

The cabinet also greenlit a fund worth Rs 824.77 crore for technology infusion into insurance schemes, boosting damage assessment and claim settlements. This aligns with efforts to leverage digital technologies for insurance services and reflects the government's commitment to bolstering the agricultural sector.

(With inputs from agencies.)