Govt Extends One-Time Package Of Up To Rs 3,850 Crore To Subsidise DAP

The Union Cabinet on Wednesday cleared a one-time package of Rs 3,850 crore for subsidising Di-Ammonium Phosphate (DAP) and also extended two crop insurance schemes - Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) till 2025-26. These decisions are set to advance the cause of strengthening the welfare of farmers since they provide low-cost fertilisers and insurance coverage. Crop insurance schemes between 2021-22 and 2025-26 were allocated by the government at Rs 69,515.71 crore compared to Rs 66,550 crore for the preceding period. Additionally, there is also a separate Fund for Innovation and Technology (FIAT) of Rs 824.77 crore established to incorporate digital technologies that would help accelerate crop damage assessment, claim settlement, and increased enrollment.

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One-time DAP subsidy package cleared, worth Rs 3,850 crore.

Under the extended DAP package, retail prices remain at Rs 1,350 per 50 kg bag, with the central government absorbing the cost burden. This package complements the Nutrient-based subsidy (NBS) scheme, thereby ensuring the smooth supply of 28 grades of phosphatic and potassic fertilisers. During 2014-24, total fertiliser subsidies had crossed Rs 11.9 lakh crore, double that provided between 2004-14 - Rs 5.5 lakh crore. Prime Minister Narendra Modi hailed the decisions as significant steps towards securing farmer interests. Information and Broadcasting Minister Ashwini Vaishnaw reaffirmed that the government remained committed to making farmer welfare a priority as it ensured the steady prices of fertilisers during geopolitical challenges.

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The Cabinet also agreed to allow 1 million tonnes of non-basmati rice export to Indonesia through National Cooperative Export Ltd (NCEL). The PMFBY, India’s largest insurance scheme, offers financial aid for crop losses due to yield risks, while RWBCIS focuses on weather-related damages. These schemes currently cover 23 states and union territories. The infusion of technology under FIAT aims to reduce disputes and expand the reach of crop insurance. By integrating digital tools, the government seeks to enhance the efficiency and accessibility of agricultural support systems, driving higher insurance penetration and improved farmer welfare.