India’s Union Cabinet extends crop insurance schemes

It has a total allocation of ₹69,515.71 crore.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme until 2025 to 2026, with a total allocation of ₹69,515.71 crore for the five-year period starting 2021 to 2022. 

The extension aims to provide risk coverage for crops against non-preventable natural calamities.

To enhance efficiency and transparency in claim calculation and settlement, the government has also approved the creation of a ₹824.77 crore Fund for Innovation and Technology (FIAT). 

The fund will support technological advancements under the schemes, including the Yield Estimation System using Technology (YES-TECH) and Weather Information and Network Data Systems (WINDS).

YES-TECH employs remote sensing technology for crop yield estimation, with at least 30% of the process relying on technology-based assessments. 

Nine states, including Andhra Pradesh, Assam, Haryana, and Madhya Pradesh, have already adopted YES-TECH, with Madhya Pradesh achieving 100% technology-based yield estimation. 

Wider implementation aims to phase out manual crop-cutting experiments.

WINDS focuses on setting up automatic weather stations and rain gauges at block and panchayat levels to improve hyper-local weather data collection. 

The government plans a fivefold increase in the current network density, with nine states, including Kerala, Uttar Pradesh, and Himachal Pradesh, preparing for implementation in 2024-25.

Special provisions have been made for North Eastern states, where the central government will cover 90% of the premium subsidy. 

However, due to the voluntary nature of the scheme and low gross cropped area in the region, unused funds may be reallocated to other development projects as needed.