The Union Cabinet, led 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 (RWBCIS) until 2025-26. These initiatives aim to provide comprehensive risk coverage for farmers against non-preventable natural calamities. The allocated budget for the schemes is Rs 69,515.71 crore for the five-year period from 2021-22 to 2025-26.
Technology Infusion and New Initiatives
To enhance the implementation of these schemes, the Cabinet has also approved the establishment of a Fund for Innovation and Technology (FIAT) with a corpus of Rs 824.77 crore. This fund will support technological advancements, including the Yield Estimation System using Technology (YES-TECH) and Weather Information and Network Data Systems (WINDS), alongside research and development efforts.
YES-TECH leverages remote sensing technology for yield estimation, assigning at least 30% weightage to technology-based estimates. It has been adopted in nine major states, including Andhra Pradesh, Assam, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Karnataka, with plans to onboard others soon. Madhya Pradesh has already implemented 100% technology-based yield estimation, reducing the need for traditional Crop Cutting Experiments (CCEs).
WINDS focuses on setting up Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level. It aims to significantly enhance hyperlocal weather data collection by increasing network density fivefold. States such as Kerala, Uttar Pradesh, Himachal Pradesh, Puducherry, Assam, Odisha, Karnataka, Uttarakhand, and Rajasthan are in the process of adopting this initiative. Implementation will officially commence in 2024-25 to allow adequate preparatory work.
Priority for the Northeast
Recognizing the unique challenges in the North Eastern states, the central government will continue to bear 90% of the premium subsidy to ensure maximum farmer coverage. The region has been given flexibility to reallocate unused funds to other development initiatives due to the voluntary nature of the scheme and lower gross cropped area.
