Union Cabinet Approves Key Decisions For Agriculture

Under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi Ji, the Union Cabinet has approved several crucial initiatives aimed at empowering farmers and strengthening the agriculture sector.

The proactive decisions reaffirm the government’s commitment to farmers’ welfare and the long-term sustainability of Indian agriculture.

1. Crop Insurance Schemes Extension

• Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS) will continue until 2025-26, with an overall financial outlay of ?69,515.71 crore (2021-22 to 2025-26).
• This ensures continued risk coverage for crops against non-preventable natural calamities, benefiting farmers across India.
• Additionally, the Cabinet has approved the creation of a Fund for Innovation and Technology (FIAT) with a corpus of ?824.77 crore to promote technological advancements in agriculture.

2. Affordable Fertilizers

• The One-time Special Package on Di-Ammonium Phosphate (DAP) has been extended beyond the Nutrient-Based Subsidy (NBS).
• ?3,500 per MT additionally will be provided from January 1, 2025, onwards, ensuring the sustainable availability of DAP at affordable prices for farmers. The tentative budgetary requirement for this initiative is ?3,850 crore.

3. Increased Minimum Support Price (MSP) for Raw Jute

• The MSP for Raw Jute (TD-3 grade) has been set at ?5,650 per quintal for the 2025-26 marketing season.
• This provides farmers a 66.8% return over the all-India weighted average cost of production. The decision aligns with the government’s commitment, as announced in Budget 2018-19, to set MSP at 1.5 times the cost of production.