New Delhi, March 13: Congress Rajya Sabha MP Rajeev Shukla raised a critical issue regarding the farmers’ crop insurance scheme in the house on Friday. He stated that insurance companies are failing to provide adequate and fair compensation to farmers. This matter is of utmost importance, affecting millions of farmers across the country.
Shukla highlighted several examples from various states that reveal serious flaws in the scheme. In Maharashtra, farmers faced crop losses, and when compensation was disbursed, some received as little as 21 rupees, others just 8 rupees, and some even received only 3 rupees.
He questioned the government, asking, “What can a farmer do with just 3 rupees?” He noted that while the Prime Minister’s Crop Insurance Scheme is well-known, it was launched with significant objectives. It was intended to allow farmers to secure their crops against natural disasters like droughts, floods, hailstorms, and pest infestations at a low premium. The scheme promised financial support during crises to stabilize farmers’ incomes.
Shukla also mentioned the flooding in Bareilly, Uttar Pradesh, where rice crops were submerged. Farmers filed insurance claims, but the compensation received was as low as 3.76 rupees for some and 2.62 rupees for others.
He further questioned how farmers could plant new crops with just 5 rupees. He asked if 3 rupees would even cover diesel costs or pesticides. He sarcastically suggested that farmers might as well frame the meager compensation as their insurance safety net. Shukla emphasized that insurance should provide support during crises, yet farmers are left wondering how they can sustain their livelihoods with such minimal payouts.
Moreover, he pointed out that the issue isn’t solely about the amount. In many cases, physical verification of crops is not conducted in a timely manner. Officials often arrive only after crops are completely ruined, just as the re-sowing period begins. Sometimes, the online portal goes down, leaving farmers to exhaust their resources without receiving adequate compensation. Additionally, average assessments are made for entire areas, which can overlook individual farmers whose crops have been entirely devastated.
Shukla also noted that farmers pay a premium of 1.5 to 2 percent, while the government covers the rest, meaning taxpayer money is at stake. Insurance companies collect thousands of crores in premiums. In normal years, claims are low, leading to increased profits for these companies. However, when it comes time for farmers to claim, they receive paltry amounts. In some instances, premiums are deducted from farmers’ accounts without clear information. This system, where farmers and the government bear the risk while others reap the benefits, is unjust.
He urged the government to establish clear timelines for settling insurance claims and payments. He called for timely and transparent assessments of crop damage and proposed that evaluations be conducted at the actual field level instead of relying on area averages. Additionally, he demanded accountability from insurance companies to ensure farmers receive fair and respectful compensation.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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