Prime Minister Narendra Modi announced on Wednesday, January 1, 2025, that the government’s first decision of the year focuses on supporting farmers. The Union Cabinet, chaired by him, has approved an increase in funding for the crop insurance scheme and raised subsidies for a key fertiliser.
Taking to X, the Prime Minister stated that the government’s first decision of the New Year is dedicated to millions of farmers across the country. He added that the approval for increased allocation to the crop insurance scheme will provide greater security for farmers’ crops and address concerns about potential damage.
The Cabinet also extended the one-time special package for Di-Ammonium Phosphate (DAP), ensuring its availability at affordable prices.
According to the announcement, the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather-Based Crop Insurance Scheme will continue until 2025-26, with a total budget of ₹69,515.71 crore for the period 2021-22 to 2025-26. This move aims to provide risk coverage for crops against natural calamities, offering farmers much-needed protection and support.
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Additionally, the Cabinet approved an extension of the one-time special package on DAP, beyond the Nutrient-Based Subsidy (NBS), at ₹3,500 per metric tonne. This measure ensures that farmers can access fertiliser at affordable rates. The budgetary requirement for this subsidy is estimated to be approximately ₹3,850 crore, the statement said.
With these decisions, the government seeks to safeguard farmers’ interests, strengthen agricultural security, and promote sustainable farming practices in the country.