Cabinet Approves Key Reforms for PMFBY and RWBCIS to Benefit Farmers Across India
NEW DELHI : The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the continuation and enhancement of two major agricultural insurance schemes: the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS). The approved reforms aim to significantly improve the risk coverage for farmers in the face of natural calamities, boost the transparency of claims processes, and promote the use of cutting-edge technology in agriculture.
Key Funding Approval: Rs. 69,515 Crore for 2021-26
In a major decision aimed at supporting India’s farming community, the Cabinet approved an overall outlay of Rs. 69,515.71 Crore for the period 2021-22 to 2025-26. This funding will continue to support PMFBY and RWBCIS, which provide crop insurance and financial assistance to farmers affected by non-preventable natural calamities such as floods, droughts, and storms.
The continuation of these schemes ensures that millions of farmers across the country will receive critical insurance coverage, which has become increasingly important in the face of erratic weather patterns and rising climate risks. These schemes not only offer financial security but also aim to strengthen the resilience of the agricultural sector.
Introduction of the Fund for Innovation and Technology (FIAT)
In a bid to modernize the implementation of these schemes, the Union Cabinet also approved the creation of a Fund for Innovation and Technology (FIAT), with a corpus of Rs. 824.77 Crore. The fund will be used to finance technological initiatives designed to improve the accuracy and transparency of crop yield estimation, claims settlement, and overall insurance processes.
This infusion of technology is expected to improve the efficiency of PMFBY and RWBCIS, ensuring quicker claim settlements and reducing fraud or human error in the process. It also underpins the government’s vision of using data-driven, high-tech solutions to transform agriculture and provide farmers with better support systems.
YES-TECH: Revolutionizing Yield Estimation with Remote Sensing
One of the most notable technological advancements in this reform is the introduction of the Yield Estimation System using Technology (YES-TECH). YES-TECH leverages remote sensing technology to estimate crop yields more accurately. Under this system, technology-based yield estimates will carry a weightage of at least 30%, which significantly reduces reliance on traditional crop cutting experiments.
As of 2023-24, YES-TECH has been operational in nine major states including Andhra Pradesh, Assam, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Karnataka. Other states are also being brought on board for quicker implementation. Madhya Pradesh has already adopted 100% technology-based yield estimation, setting a high standard for the rest of the country.
The use of remote sensing in yield estimation aims to drastically reduce the time and costs associated with manual crop cutting experiments, making the insurance process more efficient. This shift is expected to improve the accuracy of claims, ensuring farmers receive compensation that truly reflects the impact of natural calamities on their crops.
WINDS: A New Era of Hyperlocal Weather Data
In another breakthrough, the Cabinet approved the Weather Information and Network Data Systems (WINDS), a project aimed at improving weather data collection and forecasting at the grassroots level. WINDS will establish Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level. This will help create hyperlocal weather data, enabling more accurate predictions and timely interventions.
The WINDS initiative aims to increase the density of the current weather network by five times, providing real-time weather information that can be used to monitor conditions that affect crop growth. By providing precise, localized weather data, WINDS will allow farmers to make better-informed decisions regarding crop protection, irrigation, and harvesting.
Currently, nine states are in the process of implementing WINDS, including Kerala, Uttar Pradesh, Himachal Pradesh, Puducherry, Assam, Odisha, Karnataka, Uttarakhand, and Rajasthan. Other states have shown interest in adopting this system as well, which promises to play a vital role in mitigating the impact of adverse weather conditions on crops.
90:10 Funding Ratio for North-Eastern States
In an effort to ensure that farmers in the North-Eastern states are not left behind, the government has introduced a 90:10 premium subsidy sharing ratio. The Centre will bear 90% of the cost, making crop insurance more accessible in these regions, where farming challenges and low gross cropped area often lead to lower participation in insurance schemes.
However, due to the voluntary nature of the scheme and the limited agricultural activity in some parts of the North East, the government has allowed flexibility in how funds are allocated. States with lower uptake can reallocate funds to other developmental projects without the risk of surrendering them.
Reforms Aimed at Boosting Farmer Confidence
The Cabinet’s approval of these reforms is expected to restore confidence among farmers, who have long struggled with inadequate risk coverage and delayed insurance payouts. By integrating advanced technologies like remote sensing and hyperlocal weather data, these schemes aim to eliminate inefficiencies in the current crop insurance process.
The inclusion of technological tools like YES-TECH and WINDS, alongside an increased focus on North-Eastern farmers, represents a significant shift towards more inclusive and transparent agricultural support systems. The government’s continued focus on digital solutions also aligns with its broader agenda to modernize agriculture and empower farmers with the tools and knowledge they need to navigate an increasingly unpredictable climate.
Conclusion: A Step Toward a Resilient Agricultural Future
The Union Cabinet’s decision to approve reforms in PMFBY and RWBCIS, along with substantial funding for innovation and technology, marks a transformative moment for India’s agricultural sector. These initiatives will not only provide financial security to farmers but also lay the groundwork for a more resilient and tech-enabled future.
As the agricultural sector adapts to the challenges posed by climate change and a rapidly evolving global economy, the infusion of technology, transparency, and targeted support will play a crucial role in ensuring that Indian farmers can continue to thrive in the face of adversity