The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JANUARY 1, 2025
In a significant move to fortify the agricultural sector, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) till 2025-26. With an overall financial outlay of Rs 69,515.71 crore for the period from 2021-22 to 2025-26, the schemes aim to ensure comprehensive risk coverage for crops against non-preventable natural calamities, benefitting farmers across the country.
To enhance the effectiveness and transparency of the schemes, the Cabinet has also approved the establishment of the Fund for Innovation and Technology (FIAT) with a corpus of Rs 824.77 crore. This fund will support technological initiatives, including the Yield Estimation System using Technology (YES-TECH) and Weather Information and Network Data Systems (WINDS), along with research and development projects.
YES-TECH, a cutting-edge initiative employing remote sensing technology for yield estimation, allocates a minimum of 30% weightage to technology-based yield assessments. Nine major states — Andhra Pradesh, Assam, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Karnataka — are already implementing YES-TECH, with others in the process of onboarding. Notably, Madhya Pradesh has fully transitioned to 100% technology-based yield estimation, streamlining claim calculation and settlement processes.
WINDS aims to revolutionize weather data collection by establishing Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level. This initiative envisions a fivefold increase in current network density, enabling hyper-local weather monitoring. Implementation is underway in nine states, including Kerala, Uttar Pradesh, and Himachal Pradesh, with plans for wider adoption. To support state governments, the Cabinet has adjusted the implementation timeline, designating 2024-25 as the first operational year, with a favorable 90:10 central-state funding ratio.
Recognizing the unique challenges faced by farmers in the North Eastern states, the government continues to prioritize their inclusion under the schemes. The Centre shares 90% of the premium subsidy for these states. However, given the voluntary nature of the scheme and the region’s lower gross cropped area, provisions have been introduced to reallocate unused funds to other developmental projects as needed.
The continuation of these schemes underscores the government’s commitment to empowering farmers with robust financial safety nets and advanced technological tools. By integrating innovations such as YES-TECH and WINDS, the schemes promise increased transparency, reduced manual intervention, and expedited claim settlements, fostering greater resilience in India’s agricultural landscape.
