The Union cabinet, chaired by Modi, approved an extension to the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of ₹69,515.71 crore.
It also signed off on a proposal to top up the subsidy allocation for di-ammonium phosphate (DAP), a widely used fertiliser, with an additional outlay of ₹3,850 crore, an official statement said.
PMFBY is the country's main subsidised crop insurance scheme, where farmers pay between 1.5% and 5% of the premiums depending on crop cycles.
The remaining premium is shared 50:50 between the Centre and state governments. In case of northeastern states, the Centre pays 90% of the premium subsidy.
The council of top ministers approved a larger subsidy on DAP over and above the so-called nutrient-based subsidy (NBS) regime, at 23,500 per tonne as a one-time special package. Under the NBS policy, the government offers, on an annual basis, a fixed rate of subsidy on a per kg basis for crop nutrients containing nitrogen (N), phosphate (P), potash (K) and sulphur (S) to shield farmers from high market prices.
"The first Cabinet of 2025 is dedicated to enhancing prosperity for our farmers. I am glad that key decisions have been taken in this regard," Modi said in a post on X.
"We have approved an increase in the allocation for crop insurance scheme. This will provide more security to farmers' crops and will also mitigate their concerns about any damage." The farmer-friendly decisions come in the backdrop of ongoing protests by agriculturists in Punjab, who are demanding legally guaranteed minimum support prices or MSPs. MSPs are federally determined floor prices for 23 key crops aimed at avoiding distress sales.
This story is from the January 02, 2025 edition of Hindustan Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 02, 2025 edition of Hindustan Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
No Bumrah, no joy: BGT changes hands
With the pacer unable to bowl due to back spasms, Australia ease to six-wicket win to clinch series 3-1, seal WTC final spot
Diallo earns Manchester United deserved draw at Liverpool
Amad Diallo struck a late equaliser as Manchester United made a mockery of their recent form to hold Premier League leaders Liverpool to a thrilling 2-2 draw at Anfield on Sunday.
New York becomes first American city to roll out traffic congestion charge
Congestion pricing has finally arrived in New York City (NYC), though its long-term future still remains uncertain.
EU polls may delay FTA talks
Upcoming elections in several European Union (EU) member-states, including Germany, Romania, and Croatia, are expected to delay India's plans to finalize the free trade agreement (FTA) with the 27-nation bloc, two people aware of the matter said.
Ridding campuses of caste discrimination
The Supreme Court's directive asking the UGC to notify within six weeks new regulations to fight caste-based discrimination and suicides in higher education institutions (HEIS) has come not a moment too soon.
Alert in Maha after four big cats succumb to HSNI
Three tigers and a leopard succumbed to avian influenza H5N1 virus at the Gorewada Wildlife Rescue Centre, Nagpur, in December, officials said on Sunday and added that heightened biosecurity measures are now in place across Maharashtra's wildlife facilities.
Indian glaciers retreating at faster pace, UN told
The report references the receding of a glacier’s snout.
Perfect start to total disaster: India suffer shambolic 1-3 loss
It was the sigh from the crowd that gave it away.
I've done a lot of TV, and I was tired, so I left it, as one tends to lose excitement, says Aamir Ali
Actor Aamir Ali has been a regular face on television for just a little under two decades, having been part of Kahaani Ghar Ghar Kii, Kya Dil Mein Hai and FIR.
Ariana Grande's 'Botox and Juvederm' joke sparks backlash
Singer-actor Ariana Grande, who has received significant praise for her portrayal of Glinda in Wicked (2024), was honoured with the Rising Star Award at the Palm Springs International Film Festival 2025 on January 3.
