Cabinet Increases Interest Subvention to 2.5% under Dairy Processing & Infrastructure Development Fund

The cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday has come up with some new initiatives and big gifts to the millions of farmers across India. As per reports, the Government has decided to make the Pradhan Mantri Fasal Bima Yojana (PMFBI) voluntary and give a 90 percent premium of crop insurance for the farmers of North East. At the same time, the cabinet has also approved the proposal to increase the benefit in the Interest Subvention Scheme from 2 percent to 2.5 percent. The decision of the government will benefit 95 lakh dairy farmers across India, said Union Minister Prakash Javadekar during a press conference after the meeting.

5.5 Crore Farmers Took the Advantage of Crop Insurance

While addressing the press conference, Agriculture Minister Narendra Singh Tomar said, '5.5 crore farmers have taken advantage of the Prime Minister's Crop Insurance Scheme launched by the Prime Minister in 2016. A total premium of Rs 13,000 crore was collected under the Prime Minister's crop insurance scheme while an insurance claim of Rs 60,000 crore has been approved. Moreover, the cabinet approved the amendment in the crop insurance scheme, made it voluntary for farmers, said the agriculture minister.

Big Offer for North-East Farmers

During the press conference, the Agriculture Minister said, the Central Government and the State Government contribute 50-50 percent of the premium for Prime Minister Crop Insurance Scheme. This time, the government has taken a big step for the farmers of North East, said Tomar.

“Moreover, the center will contribute 90 percent of the crop insurance premium and 10 percent of the state. Apart from this, the amount of 3 percent plan will remain on the administrative system. The cabinet has set a target of forming 10 thousand farmers’ production associations”, added the agriculture minister. The cabinet has also approved the proposal to increase the benefit in the interest subvention scheme from 2 percent to 2.5 percent.

Govt Approves Rs 4,558 Crore Scheme for Dairy Farmers

The government has approved a Rs 4,558 crore scheme to encourage the dairy sector which is going to benefit around 95 lakh farmers across India. Information and Broadcasting Minister Prakash Javadekar informed the journalists about this decision made by the cabinet headed by Prime Minister Narendra Modi. Moreover, he added that this initiative will add new dimensions to the milk revolution of the country.