Cabinet approves continuation of PM Fasal Bima Yojana, weather-based crop insurance scheme till 2025-26

The Union Cabinet has approved the continuation of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with a total budget of ₹69,515.71 crore. The aim of this decision is to provide risk coverage to farmers against natural calamities.

On January 1 2025, Information and Broadcasting Minister Ashwini Vaishnaw announced that the total financial allocation for the scheme has been raised to ₹69,515 crore. He noted that 88 percent of the insured farmers are categorized as small and marginal farmers.

Additionally, 57 percent of the insured farmers belong to the Other Backward Classes (OBC), Scheduled Castes (SC), and Scheduled Tribes (ST). The Minister highlighted that over the past eight years, claims amounting to ₹1.7 lakh crore have been disbursed to farmers. The first Cabinet meeting of 2025 was notably focused on issues pertinent to farmers.

Furthermore, the Union Cabinet has approved the extension of the One-time Special Package for Di-Ammonium Phosphate (DAP) fertilizers, which will continue beyond the Nutrient Based Subsidy at a rate of ₹3,500 per metric ton. The proposal from the Department of Fertilizers for this extension has been approved to ensure the sustainable availability of DAP at affordable prices for farmers. Farmers will continue to purchase DAP at ₹1,350 per 50-kilogram bag. The estimated budgetary requirement for this initiative is projected to be around ₹3,850 crore.

The additional financial responsibility will be assumed by the Union Government, ensuring that DAP remains accessible to farmers at subsidized and reasonable prices.