In a significant boost to India’s agricultural landscape, the government has approved several policy initiatives aimed at enhancing crop insurance and fostering innovation in the sector. During a Union Cabinet meeting chaired by Prime Minister Narendra Modi on January 1, 2025, the government announced the extension of two major crop insurance schemes: the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather Based Crop Insurance Scheme. Both schemes, which provide essential financial support to farmers in the event of crop failure, will now continue through the 2025-26 fiscal year.
The total allocation for these initiatives has been increased to an impressive Rs. 69,515.71 crore, reflecting the government’s commitment to safeguarding farmers against unforeseen circumstances and adverse weather conditions. The Pradhan Mantri Fasal Bima Yojana compensates farmers for crop losses due to unexpected events, while the Restructured Weather Based Crop Insurance Scheme specifically addresses losses resulting from adverse weather parameters such as rainfall, temperature fluctuations, and humidity. This dual approach aims to provide comprehensive coverage for farmers, ensuring that they are better equipped to navigate the uncertainties of agricultural production.
In tandem with the extension of these insurance schemes, the government has also announced the establishment of the Fund for Innovation and Technology (FIAT), with a total corpus of Rs. 824.77 crore. This fund is designed to promote research and development in the agricultural sector, supporting projects like the Yield Estimation System using Technology (YES-TECH) and the Weather Information and Network Data Systems (WINDS).
YES-TECH employs remote sensing technology to assess the yield of standing crops, integrating modern technology into traditional agricultural practices. Currently implemented in nine states, including Madhya Pradesh and Tamil Nadu, YES-TECH is set to play a crucial role in improving the accuracy of crop yield estimations, with a target weightage of at least 30% in the General Crop Estimation Survey. Notably, Madhya Pradesh has emerged as a leader in adopting technology-based estimation methods, showcasing the potential for innovation in agricultural practices across the country.
The WINDS initiative aims to enhance weather data collection through the establishment of Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level. This initiative is crucial for providing timely and accurate weather information, which can significantly impact farming decisions. With the central government covering 90% of the costs in the first year, states like Uttar Pradesh, Kerala, and Assam will benefit from improved weather monitoring capabilities, ultimately leading to better-informed agricultural practices.
These policy decisions reflect a comprehensive approach to strengthening India’s agricultural sector by not only providing immediate financial support through crop insurance but also investing in long-term technological advancements. By fostering innovation and enhancing data collection, the government aims to empower farmers, ensuring their resilience in the face of challenges and paving the way for a more sustainable agricultural future.
