Prime Minister Narendra Modi
For large scale technology infusion in implementation of the scheme leading to increasing transparency and claim calculation and settlement, the Union Cabinet has also approved creation of Fund for Innovation and Technology (FIAT) with a corpus of Rs.824.77 crore. The fund will be utilised towards funding technological initiatives under the scheme namely, YES-TECH, WINDS, etc as well as Research and Development studies
New Delhi: The Union Cabinet chaired by the Prime Minister Narendra Modi today approved extension of two crop insurance schemess- Pradhan Mantri Fasal Bima Yojana(PMFSBY) and Restructured Weather Based Crop Insurance Scheme(RWBCIC)- till 2025-26 with an overall outlay of Rs.69,515.71 crore from 2021-22 to 2025-26.
Two schemes 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.
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.
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.
The decision will help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26.
Also for large scale technology infusion in implementation of the scheme leading to increasing transparency and claim calculation and settlement, the Union Cabinet has also approved creation of Fund for Innovation and Technology (FIAT) with a corpus of Rs.824.77 crore.
Information and Broadcasting (I&B) Minister Ashwini Vaishnaw said for the targeted infusion of technology in the implementation of the crop insurance schemes, 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.
The fund will be utilised towards funding technological initiatives under the scheme namely, YES-TECH, WINDS, etc as well as Research and Development studies.
Yield Estimation System using Technology (YES-TECH) uses remote sensing technology for yield estimation with minimum 30 per cent weightage to technology based yield estimates.
Meanwhile, Agriculture Minister Shivraj Singh Chouhan said on Wednesday that 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.
In a New Year message posted on social media platform X, Chouhan expressed confidence in India’s development trajectory under Prime Minister Narendra Modi’s leadership, highlighting various rural welfare initiatives implemented in the past six months.
“The New Year has brought good news that the growth rate of agriculture and allied sector is likely to be 3.5 to 4 per cent this year,” Chouhan said.
“The New Year has brought good news that the growth rate of agriculture and allied sector is likely to be 3.5 to 4 per cent this year,” Chouhan said.
Nine major states-Andhra Pradesh, Assam, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu and Karnataka are currently implementing the YES-TECH while other states are also being on-boarded expeditiously. Madhya Pradesh has adopted 100 per cent technology based yield estimation.
With wider implementation of YES-TECH, Crop Cutting Experiments and related issues will be gradually phased out.
Under YES-TECH Claim calculation and settlement has been done for 2023-24.
Weather Information and Network Data Systems (WINDS) envisages setting up Automatic Weather Stations (AWS) at block level and Automatic Rain Gauges (ARGs) at panchayat level.
Under WINDS, five times increase in current network density is envisaged to develop hyper local weather data.
Under the initiative, only data rental costs are payable by Central and state governments. Nine major states are in the process of implementing WINDS (namely Kerala, Uttar Pradesh, Himachal Pradesh Puducherry, Assam, Odisha, Karnataka, Uttarakhand & Rajasthan are in progress), while other States have also expressed willingness to implement.
WINDS could not be implemented by states during 2023-24 (1st year as per EFC) due to various background preparatory and planning work required before tendering.
Accordingly, the Union Cabinet has approved 2024-25 as the first year of implementation of WINDS as compared to 2023-24 earlier to give benefit to State Governments with higher central fund sharing in 90:10 ratio.
All efforts are made and will continue to be made to saturate all farmers of North Eastern states on priority.
To this extent, the centre shares 90 per cent of premium subsidy with North Eastern States.
However, due to scheme being voluntary and low gross cropped area in North Eastern States, flexibility has been given to avoid surrender of funds and for reallocation in other development projects and schemes with fund requirement.
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.