Mixed response to Centre’s new crop insurance scheme

The most crucial element of the scheme is that it will bring down the rate of premium to be paid by farmers to a maximum of 2 per cent of the sum insured. The remaining will be borne by the state and the Central government. But the farming community and social activists have given a mixed response to the move. 

Farmers and social activists have dubbed the decision as a small step taken towards assuring income to farmers.

Sudhir Panwar, a farmer leader, hailed the move as a positive step. “There is no doubt that it is one step ahead of the previous crop insurance scheme, but there is more to be done to address the woes of farmers,” he told Millennium Post.

Questioning the effectiveness of new crop scheme, Panwar, also president of the Kisan Jagriti Manch and a member of the Uttar Pradesh Planning Board, said: “One has to wait till the final policy document comes to the public domain as there are several questions that need to be answered. There are queries such as how farmers would be compensated, what would be the role of states, will state governments release funds for it from their own exchequer, etc.”

Bharatiya Kisan Union (BKU) leader Rakesh Tikait said putting seed sowing and post-harvest damage under insurance cover is significant, but these are just outer layers of the scheme. “We have to look into the implications of the scheme in a broader perspective. The scheme doesn’t talk about compensation to be paid to farmers, who don’t own land but practise contractual farming,” he said.

The BKU leader added: “There are several cases of big contractors, who take a particular area of land on contract and give it to a group of farmers for cultivation, and when there is a crop loss the farmers face the brunt of those contractors. We had also suggested giving relief to those farmers, but it is not there.”

Another farmer leader Ajay Jakhar, chairman of the Bharat Krishak Samaj, stressed on accurate crop assessment. He said if it doesn’t happen, the claims are taken away by those who don’t deserve it. Jhakhar added that apart from accurate assessment, crop insurance should be linked to Aadhar card to check duplicity.

Stressing on the need of crop insurance, social activist Nikhil Dey said schemes to insure farmers’ income is the utmost need, but there should be clarity. “It is important to have a crop insurance scheme. But as per my experience, the role of implementing agencies has always been disastrous. Crop insurance is important, but the way it should be implemented that’s a serious issue, which needs to be looked into,” Dey added, “Farmers run from pillar to post to get the insured amount when their crops are damaged. They are like puppets in the hands of insurance agencies as there is a strange collusion between state authorities and insurance companies.”