Farmers in dire straits as crop insurance claim distribution hit due to fund crunch

agriculture
Image: IANS

Thiruvananthapuram: The distribution of compensation to farmers in Kerala as part of the crop insurance scheme has been delayed again. The Agriculture Department claimed that the non-release of funds by the State Finance Department has led to the present crisis.

The farmers, who have already become debt ridden due to the destruction of crops, are now facing a deep crisis due to the non-receipt of their crop insurance claims.

The State Government has to give almost Rs 24 crore to the farmers as insurance claim. According to the farmers, the Agriculture Department had collected a total of Rs 2 crore as insurance premium from them.

Though the Agriculture Department repeatedly asked for an emergency allotment of Rs 20 crore, the Finance Ministry has not yet granted the amount. The Finance Department cites an acute financial crisis as the reason for the delay in the allocation of funds for the purpose. The Agriculture Department is now planning to bring the matter to the attention of the Chief Minister.

2 CROP INSURANCE POLICIES

The two crop insurance schemes in India are: Pradhan Mantri Fasal Bima Yojana (PMFBY) and Weather Based Crop Insurance Scheme (WBCIS). The latter is to give compensation to the farmers whose crops are destroyed in rain and other natural calamities. Both the policies are implemented through agriculture insurance companies.                       

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