The Union Cabinet has approved an enhanced allocation of ₹69,515 crore for the Pradhan Mantri Fasal Bima Yojana (PMFBY).

The Union Cabinet has approved an increased allocation of ₹69,515 crore for the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS), thereby extending these schemes till the financial year 2025-26.

This increased funding aims to provide comprehensive risk coverage for crops against non-preventable natural calamities, thereby benefiting farmers across the country.

In addition, the government has also announced the creation of a Fund for Innovation and Technology (FIAT) worth ₹824.77 crore to promote technological integration, ensure faster settlement of claims and easy enrolment of farmers.

The central and state governments will share funds for these schemes in the ratio of 50:50, except for Himalayan and northeastern states, where the central government will provide 90% of the funding.

Over the last eight years, nearly ₹1.7 trillion has been disbursed as insurance payouts under these schemes, covering nearly four crore farmers, 88% of whom are small and marginal farmers.

This decision underlines the government’s commitment to support the agriculture sector by reducing risks associated with farming and ensuring financial stability of farmers across the country.