On January 1, Prime Minister Narendra Modi chaired the first Union Cabinet meeting of 2025, which was dedicated to farmers. Several key decisions were made, including increasing the allocation for the Pradhan Mantri Fasal Bima Yojana, or Crop Insurance Scheme. A fund of ₹800 crore was also set up for innovation and technology. The crop insurance scheme has already benefited 57 percent of insured farmers from OBC, SC, and ST communities.
Special Package for DAP Manufacturers
One of the major decisions taken during the meeting was the approval of a special package for manufacturers of Di-Ammonium Phosphate, or DAP, fertiliser. This initiative includes financial assistance for DAP producers in addition to the existing subsidies.
The Cabinet also approved proposals to make the crop insurance scheme more attractive, aiming to provide better financial security to farmers against potential losses.
DAP Bags at ₹1,350
Union Minister Ashwini Vaishnaw, during a briefing, announced that the Cabinet has approved an extension of the one-time special package on DAP fertiliser beyond the Nutrient-Based Subsidy for the period January 1, 2025, to December 31, 2025. The budgetary requirement for this step is approximately ₹3,850 crore.
This decision ensures that farmers will continue to receive 50 kilogram DAP fertiliser bags at an affordable price of ₹1,350.
Key Highlight – Crop Insurance Scheme Expansion
The biggest decision announced was the expansion of the Pradhan Mantri Fasal Bima Yojana, which has already brought significant improvements to farmers’ lives. The allocation for the scheme has been increased to ₹69,515 crore. Considering the positive impact this scheme has had, the enhanced budget aims to further strengthen the financial safety net for farmers.