Government Extends Crop Insurance Schemes Till 2025-26; Allocates ₹824.77 Crore for Technology Upgrades

Government Extends PMFBY and RWBCIS Till 2025-26; Launches ₹824.77 Crore Technology Fund

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) until 2025-26, aligning their timelines with the 15th Finance Commission period. Alongside the extension, the government has introduced a ₹824.77 crore Fund for Innovation and Technology (FIAT) to enhance the implementation of these flagship schemes through cutting-edge technology.

Key Highlights:

1. Enhanced Outlay for PMFBY and RWBCIS:

   • The total allocation for the two schemes has been increased to ₹69,515.71 crore for 2021-26, up from ₹66,550 crore for the previous period (2020-25).
   • The schemes aim to provide financial protection to farmers against crop losses due to natural calamities and weather risks.

2. Focus on Technological Advancements:

   • The newly established FIAT fund will drive initiatives like:
     • YES-TECH (Yield Estimation System using Technology):
       Employing remote sensing technology for precise yield estimation. Currently operational in nine states, including Andhra Pradesh and Haryana. Madhya Pradesh achieved 100% technology-based yield estimation in 2023-24.
     • WINDS (Weather Information and Network Data Systems):
       Aiming to set up Automatic Weather Stations (AWS) and Automatic Rain Gauges (ARGs) for hyper-local weather data collection. Implementation begins in 2024-25 with a 90:10 central-to-state funding ratio.

3. Prioritizing the North Eastern States:

   • The government provides a 90% subsidy on premium costs for farmers in the northeastern states, ensuring greater accessibility.
   • Flexible fund allocation allows unused funds to be redirected to other developmental initiatives in the region.

Benefits of Technology Integration:

The introduction of FIAT will accelerate:

• Faster assessment of crop damage.
• Improved claim settlement processes.
• Increased farmer coverage through simplified enrolment.

Scheme Impact:

Currently, 23 states and Union Territories implement PMFBY, making it India’s largest crop insurance program by policies issued and the third largest by premiums collected.

These schemes, designed to protect farmers from yield and weather-related risks, underscore the government’s commitment to safeguarding the agricultural sector and integrating advanced technologies for enhanced efficiency.