Cabinet approves Rs 69,515 crore boost for PM Fasal Bima Yojana

The Union Cabinet approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) until 2025-26 on Wednesday. The decision was made with a total outlay of Rs 69,515.71 crore.

This extension ensures that farmers will continue to receive coverage for crop losses due to non-preventable natural calamities, noted the official government press release.

In addition to the continuation of the schemes, the Cabinet also approved the creation of a Fund for Innovation and Technology (FIAT) with a corpus of Rs 824.77 crore. This fund will support technological initiatives, such as the YES-TECH (Yield Estimation System using Technology) and WINDS (Weather Information and Network Data Systems), aimed at enhancing the efficiency and transparency of claim settlements.

• YES-TECH: Utilizes remote sensing technology for accurate yield estimation, now implemented in 9 major states, including Madhya Pradesh, which adopted 100% technology-based estimation in 2023-24.
• WINDS: Plans to set up Automatic Weather Stations (AWS) and Automatic Rain Gauges (ARGs) for hyper-local weather data. The system is being rolled out in 9 states, including Uttar Pradesh and Karnataka, with a 90:10 central-to-state funding ratio for its implementation.

The government also aims to prioritize the North Eastern States, with a 90% subsidy on premium to encourage farmer participation. The flexibility in fund allocation will ensure no funds are surrendered and can be used for other development projects in these regions.

These initiatives are designed to provide comprehensive risk coverage and improve the agricultural insurance system, ensuring greater financial security for farmers.