New Year Initiatives for Indian Farmers
The Union Cabinet of India has made significant decisions aimed at enhancing the welfare of farmers as the new year unfolds. Union Minister for Rural Development, Agriculture, and Farmers Welfare, Shri Shivraj Singh Chauhan, expressed optimism during a recent press conference. He emphasized that the government is dedicated to fulfilling Prime Minister Narendra Modi‘s vision of a developed India. The new year is dedicated to farmers, and the Cabinet has approved several initiatives to support them. These decisions are expected to bring happiness and prosperity to the agricultural community.
Continued Support for Crop Insurance
One of the major decisions made by the Union Cabinet is the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme until 2025-26. The government has allocated a substantial budget of ₹69,515.71 crore for these initiatives. The primary goal of this decision is to provide farmers with risk coverage against natural calamities.
Shri Chauhan noted that in the past, states often delayed their financial contributions to these schemes. However, the central government has committed to timely payments of its share. This commitment aims to ensure that farmers receive the necessary support when they need it most.
Additionally, the Cabinet has approved the establishment of the Fund for Innovation and Technology (FIAT), with an allocation of ₹824.77 crore. This fund will focus on improving technology in insurance schemes. Key initiatives under this fund include the Yield Estimation System using Technology (YES-TECH), which employs remote sensing for accurate crop yield estimates. Another initiative, the Weather Information and Network Data System (WINDS), aims to enhance weather data collection through automatic weather stations. The implementation of WINDS is set to begin in the 2024-25 fiscal year, further bolstering the support for farmers.
Affordable Fertilizer Access
In another significant move, the Cabinet has approved the extension of a one-time special package on diammonium phosphate (DAP) until December 31, 2025. This decision is crucial for ensuring that DAP remains affordable for farmers. Under the Nutrient Based Subsidy (NBS) policy, fertilizer companies set prices based on a fixed subsidy.
The Cabinet had previously approved this special package until December 31, 2024. The budgetary requirements for the extended period from January 1, 2025, to December 31, 2025, are estimated to be ₹3,850 crore. Payments will be made from the budget available under the NBS Scheme based on actual Point of Sale (PoS) sales of DAP during this period. This extension is expected to alleviate the financial burden on farmers, allowing them to access essential fertilizers at reasonable prices.
Strengthening Trade Relations with Indonesia
The third major decision involves the signing of a Memorandum of Understanding (MoU) on the trade of Non-Basmati White Rice (NBWR) between India and Indonesia. This agreement allows for the trading of one million metric tonnes of non-basmati white rice annually, based on production and international prices. The MoU will last for four years and can be automatically extended for an additional four years.
The National Cooperative Exports Limited (NCEL), authorized by the Ministry of Cooperation, will implement this agreement. NCEL is a cooperative society established under the Multi-State Cooperative Societies Act, 2002. This MoU aims to address trade imbalances and strengthen trade relations between India and Indonesia. NCEL will source Non-Basmati White Rice from the open market through a transparent tender process and from cooperative societies, ensuring that market dynamics remain unaffected.
Future Goals for Agricultural Development
Shri Chauhan concluded the press conference by stating that the Ministry of Agriculture and Farmers Welfare has set ambitious targets for the upcoming month. The government is committed to achieving these goals to further enhance the welfare of farmers. With these new initiatives, the government aims to create a supportive environment for farmers, ensuring their financial stability and promoting agricultural growth in India.
As the new year begins, these decisions reflect the government’s dedication to improving the lives of farmers and fostering a prosperous agricultural sector.
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