NEW DELHI: At a time when farmers in Punjab are on the war path, the Union Cabinet on Wednesday allocated up to Rs 3,850 crore for a one-time package to subsidise the di-ammonium phosphate (DAP) fertiliser and approved a one-year extension of two crop insurance schemes.
In a post on X, Prime Minister Narendra Modi 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 decision on DAP will ensure farmers get it at affordable prices, he added.
The DAP subsidy aims to keep retail prices at Rs 1,350 per bag of 50 kg, Union minister Ashwini Vaishnaw said during a media briefing. 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. The package was over and above the nutrient-based subsidy fixed by the government on non-urea nutrients.
Besides, the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) have been extended to align it with the 15th Finance Commission period, Vaishnaw said. The outlay for PMFBY and RWBCIS has been enhanced to Rs 69,515.71 crore for 2021-22 to 2025-26, up from Rs 66,550 crore for 2020-21 to 2024-25.
For targeted infusion of technology in crop insurance schemes, the Cabinet also approved a separate fund with a corpus of Rs 824.77 crore.
