Bhubaneswar: After inaugurating his 3rd term as PM by signing the file of PM-Kisan , PM Modi again delivers a big message on New Year Day.
The Union Cabinet chaired by PM Narendra Modi on the New Year Day has stamped its approval on two big farmer-linked schemes.
As per the Union Cabinet decisions, it has Wednesday ratified continuation of the Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26. The cabinet also given its nod to set up a Fund for Innovation and Technology (FIAT) with a corpus of Rs.824.77 Crore.
Similarly, the cabinet has also approved the proposal of the Department of Fertilizers for extension of One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy @ Rs 3,500 per MT for the period from 01.01.2025 till further orders.
The two key decisions taken on New Year Day entails a cost of Rs 18, 577cr to the Union government.
While the 2025-26 outlay for Pracdhan Mantri Fasal Bima Yojana for the year 2025-26 is estimated at Rs 13,903cr, FIAT set up costs Rs 824.77cr and one-time special package on DAP will cost Rs 3,850cr.
With Union Budget coming up on February 1, the two key cabinet decisions benefitting farmers and signing on his third tenure by vetting PM-Kisan file hint big about the upcoming budget. The budget may hold big promise for the farmers of the country.
The farmer-centric decisions of the Modi govt is also being seen in the backdrop of lingering farmer agitation over the Haryana – Punjab borders, propped up by opposition parties.
PMFBY STATUS
Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced in the country from Kharif 2016 season is voluntary for States as well as farmers.
As per provisions of the scheme farmer’s share in premium has been capped at 2% during Kharif season and 1.5% for Rabi season for food and oilseed crops and 5% for commercial/ horticultural crops (both Kharif & Rabi Seasons).
Remaining share of premium is shared by the Central and State Government on 50 : 50 basis except for North Eastern States & Himalayan States, where it is shared in the ratio of 90 : 10 with certain conditions.
As on today, the applications enrolled under the scheme nationally stands at 1,428 lakhs. The number was 617 lakh in 2019-20. Under the scheme, a total of 602 lakh hectares of area were insured nationally. In 2019-20, the area insured stood at 572 lakh ha.
The increase in PMFBY applications and area insured suggest the wide acceptance of the scheme by farmers across the country.
In 2023-24 till Oct, the farmers have paid premium worth Rs 3,186cr under the scheme. However, the claims paid to the farmers stood higher at Rs 10,391 cr.
The higher amount of paid claim shows the farmers are benefitting under the PMFBY scheme.
ODISHA PMFBY STATUS
As per the data, the PMFBY applicants in the State in 2023-24 (till OCt) stood at 140 lakh from 48.79 lakh in 2019-20.
For the Mohan Majhi led BJP govt, the big fact about PMFBY implementation in ths State to fore is area insured under PMFBY has drastically fallen, when it was seen rising nationally.
As the State is vulnerable to natural disasters like cyclone, hailstorm or untimely rain, the decline in insured farm area is of a big concern.
Data shows the farm area insured in the State stood at 18.72 lakh hectare. From 2020-21, the insured area dropped to 11.89lakh hect. It reached to a low of 9.27 lakh hectare in 2022-23. The year 2023-24 till Oct has shown some improvement to touch 15.98 lakh hectare.
The main reason behind low insured area has been attributed to delay in paying the claims made by farmers, and in many instances insurance companies rejected farmer’s claims in the State.
SECOND CABINET DECISION
As per the Cabinet release, the Government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertilizer unchanged.
It said, “Inspite of geo-political constraints and volatility of global market conditions, Government kept its commitment towards farmer friendly approach by ensuring availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25.”
It needs mentioning that India imports 60% of its DAP from the countries like Russia, Morroco, Saudi Arabia, Jordan, Egypt and China.
