New Delhi: In a major decision by the Union Cabinet on the first day of 2025 the Union Cabinet, chaired by Prime Minister Narendra Modi, approved several initiatives, including an increased allocation for the Pradhan Mantri Fasal Bima Yojana and additional subsidies for DAP fertiliser. These are aimed at providing relief to farmers.
Union minister Ashwini Vaishnaw announced that the budget for the Pradhan Mantri Fasal Bima Yojana (PMFBY) has been increased to Rs 69,515 crore. The scheme aims to expedite the assessment and settlement of insurance claims, to provide timely support to farmers.
DAP fertiliser subsidy
1. Unchanged price for farmers: Farmers will continue to receive a 50 kg bag of Di-Ammonium Phosphate (DAP) fertiliser at Rs 1,350. The actual cost of DAP is around Rs 3,000. The government will bear the additional burden.
2. Special package of Rs 3,850 crore: A one-time package of Rs 3,850 crore has been approved to cover the rising costs due to price fluctuations in international market.
3. Protection from global price instability: Geopolitical issues have led to unstable DAP fertiliser prices in the international market. However, this decision ensures that farmers in India remain unaffected.
4. Impact of geopolitical challenges: Crucial maritime routes, such as the Red Sea, have become unsafe due to conflicts, forcing shipping routes to bypass via the Cape of Good Hope.
Between 2014 and 2023, the government provided fertiliser subsidies worth Rs 1.9 lakh crore to farmers, more than double the amount offered between 2004 and 2014.
