Current News: Gujarat: Crop insurance too less in a drought year, says farmers representatives

Rs 2,050 crore disbursed so far to 10.54L farmers; the amount is minuscule, say farmers' representatives

Farmers in the state are paid about Rs 2,050 crore as crop insurance settlement till early March this year, said banking sources. Farmers' representatives said that this is minuscule compared to the losses they have suffered during the year, that saw one of the worst droughts in recent years. Officials said the compensation formula is decided by the state government and insurance companies, and banks' role is just to disburse the money.

Talking to media persons on the sidelights of the meeting of State Level Bankers' Committee (SLBC), SLBC chairman Vikramaditya Singh Khichi said that for the year 2018-19, about Rs 2,050 crore worth of insurance has been paid to close to 10.54 lakh farmers in Gujarat till early March this year. Many of the farmers are yet to be paid and the amount is likely to rise, they said.

About 17.5 lakh farmers sowing about 26.08 lakh hectare are covered under Pradhan Mantri Fasal Bima Yojana (PMFBY), that provides crop insurance to farmers. In 2018-19, a total of Rs 3,137 crore was paid as a premium, of which farmers paid Rs 250 crore and the rest was equally shared by the central and state government. Close to 84 lakh hectare land undergoes sowing in kharif (Monsoon) in Gujarat, which has about 48.62 lakh farmers' accounts.


LOWDOWN

• For the year 2018-19, about Rs, 2,050 crore worth of insurance has been paid to close to 10.54 lakh farmers in Gujarat till early March this year   
• About 17.5 lakh farmers sowing about 26.08 lakh hectare are covered under Pradhan Mantri Fasal Bima Yojana (PMFBY), that provides crop insurance to farmers  
•  Close to 84 lakh hectare land undergoes sowing in kharif (Monsoon) in Gujarat, which has about 48.62 lakh farmers’ accounts

Farmers' leaders allege that the insurance scheme is making mockery of the farmers and is meant to benefit insurance companies. "2018-19 was one of the worst year for farmers. Erratic rains had reduced acreage and productivity on one hand, and on the other hand, farmers did not get remunerative prices for the crops. Under such circumstances, losses are huge and the insurance amount paid is meager," said Sagar Rabari, founder president of Gujarat Khedut Ekta Samiti. SLBC officials said that the insurance payment is determined by the state government and insurance companies and banks have no role in it.

"We have time and again said that crop insurance is for insurance companies and not for the farmers. The methodology of determining the loss is not transparent and fair. There is large scale farm distress. There are frequent protests by farmers. It is understandable that during a good Monsoon year, insurance companies reap profits. But even during a bad year, insurance companies are making profits," said Rabari.

An officer in the state agriculture department said that production loss through random sampling is ascertained and compared with the production in the past seven years. Then the crop loss is calculated, based on which insurance is paid. "Insurance is not for all farmers. It is a crop and area specific. Moreover, in 96 talukas identified as drought affected, the government has given a relief of Rs 1,600 crore. Two installments of Rs 650 crore each have been distributed under PM-Kisan scheme," said the official.





READ MORE: