Farmers in the State who are reeling under successive disasters of drought followed by flood and now impacted by COVID-19, are yet to receive insurance claims for crop loss for 2019-20.
This was stated by Karnataka Sugarcane Cultivators’ Association president Kurubur Shanthakumar who said that nearly 12 lakh farmers had availed crop insurance under Pradhan Mantri Fasal Bima Yojana and had coughed up premiums despite financial duress last year. “The total amount due to the farmers in the State is around ₹600 crore of which not a single paisa has been released so far,” said Mr. Shanthakumar.
He told The Hindu that the claims arising out of crop damage are to be released within two months of completion of the assessment. It is more than six months since the assessment was completed and there are no signs of the insurance amount being released, he added.
What is disconcerting the farmers is that they are already under pressure from the authorities to opt for crop insurance for the forthcoming season despite the failure to honour last year’s claims due to them.
“Farmers availing institutional finance are forced to avail the PMFBY as the loan component is linked to crop insurance and there is no escape. But when the crops fail, neither do the banks offer them relief by waiving off interest nor does the insurance company pay them in a time-bound manner,” said Mr. Shanthakumar.
The PMFBY was introduced to provide insurance coverage and financial support to farmers in case of the failure of any notified crops due to natural calamities. This was described as an initiative to help farmers continue with agricultural activities by providing a safety net in the event of crop failure. The association members said though the monsoon has covered the entire State, COVID-19 was having a negative bearing on agricultural activity.
“Agriculture is labour intensive but this year farmers are averse to hiring workers from other villages and regions due to fear of the pandemic, The impact – of low output due to lower crop coverage area - will be felt during the harvest season,” said Attahali Devaraj, association secretary.
