Cabinet Approves ₹69,515 Crore Outlay to Extend Crop Insurance Schemes Till 2025-26

Cabinet Approves ₹69,515 Crore Outlay to Extend Crop Insurance Schemes Till 2025-26. In a significant move to ensure the welfare of farmers, the Union Cabinet has approved an outlay of ₹69,515 crore for extending crop insurance schemes till 2025-26. This decision reaffirms the government’s commitment to agricultural resilience and the financial security of India’s farming community.

Cabinet Approves ₹69,515 Crore Outlay to Extend Crop Insurance Schemes Till 2025-26

Key Highlights

• Schemes Extended: The Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS).
• Budget Outlay: ₹69,515 crore for the next three years.
• Coverage Period: Till 2025-26.

Why This Extension Matters?

India’s agriculture is heavily dependent on weather conditions, making crop insurance a lifeline for farmers. This extension ensures:

• Financial Protection: Farmers are safeguarded against crop losses due to natural calamities.
• Increased Participation: More farmers can avail the benefits of insurance schemes.
• Stabilized Income: Ensures steady income despite adverse conditions.

Objectives of PMFBY and RWBCIS

The two Cabinet Approves schemes aim:

1. Provide comprehensive crop insurance.
2. Minimize farmer distress caused by crop failure.
3. Promote sustainable agricultural practices.
4. Reduce dependency on informal loans.

Budget Allocation Breakdown

• ₹69,515 Crore: Allocated for premium subsidies.
• Farmers’ Contribution: Set at a minimal percentage of the premium, depending on crop type.

Major Benefits of Crop Insurance Schemes

• Low Premiums: Farmers pay as low as 2% of the insured amount for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops.
• Wide Coverage: Protection against drought, floods, pests, and other natural disasters.
• Direct Benefits: Compensation is credited directly to farmers’ bank accounts.

Key Features of PMFBY

1. Technology Integration: Use of remote sensing and drones for accurate loss assessment.
2. Voluntary Enrollment: Farmers can opt in or out of the scheme.
3. Cluster-Based Approach: Insurance companies are allotted clusters to manage claims efficiently.
4. Time-Bound Claims Settlement: Ensures timely disbursal of compensation.

Achievements So Far

• Over 11 crore farmers have been insured since PMFBY’s inception in 2016.
• Claims worth ₹1.32 lakh crore have been disbursed to date.
• Increased Awareness: More farmers are adopting crop insurance as a safety net.

Challenges and Government’s Response

While the schemes have been beneficial, challenges remain:

• Delay in Claim Settlement: Addressed through technology and stricter timelines.
• Low Awareness in Remote Areas: Ongoing campaigns aim to bridge this gap.
• Private Sector Participation: The government is working to increase accountability among private insurers.

Future Roadmap

The government aims to:

• Enhance Coverage: Target more marginal and small farmers.
• Boost Technology Use: Leverage AI and big data for better risk assessment.
• Increase Transparency: Ensure clear communication of terms and conditions.
• Focus on Climate Change: Adapt policies to address changing agricultural risks.

How Farmers Can Benefit

• Enroll via local agricultural offices or online portals.
• Keep documentation ready, including Aadhaar and land records.
• File claims promptly in case of crop loss.

Expert Opinions

• Agriculture Economists: Highlight that the extension will build long-term resilience in agriculture.
• Farmers’ Groups: Appreciate the initiative but demand faster claim processing.
• Policy Analysts: Stress the need for private insurers to be more accountable.

Impact on Indian Agriculture

The extension of these schemes will have a transformative effect:

1. Economic Stability: Farmers will feel financially secure.
2. Increased Productivity: Reduced financial stress encourages better agricultural practices.
3. Rural Development: A stable farming community contributes to overall rural growth.

Conclusion

The ₹69,515 crore outlay for crop insurance schemes till 2025-26 is a commendable step towards securing the livelihoods of Indian farmers. By addressing existing challenges and incorporating technological advancements, the government is ensuring a robust safety net for the agricultural sector.

Farmers are encouraged to enroll and reap the benefits of these schemes, marking a new chapter in India’s journey toward agricultural resilience and prosperity.