Shivamogga MP questions weather-based crop insurance after low payouts to growers
B.Y. Raghavendra alleged that insurance companies and the Karnataka State Natural Disaster Monitoring Centre are working together to disadvantage farmers.
Shivamogga MP B.Y. Raghavendra questioned the utility of the weather-based crop insurance scheme on Thursday after areca growers in the district received small compensation amounts. He spoke to reporters following a meeting with officials at the Deputy Commissioner’s office in Shivamogga.
According to The Hindu, Raghavendra stated that 1,18,431 areca growers enrolled in the programme, which spans 53,848 acres. While the total premium reached nearly ₹174 crore, the compensation provided to growers was only ₹143 crore, despite a total sum assured of ₹689 crore.
The MP noted that farmers paid ₹34 crore in premiums, while the State and Union governments contributed ₹70 crore each. He alleged that insurance companies saved approximately ₹31 crore from these premiums this year, following a ₹20 crore saving by the companies last year.
Raghavendra alleged that the insurance companies and the Karnataka State Natural Disaster Monitoring Centre, which manages the rain gauge stations used to determine insurance amounts, have joined hands to do injustice to farmers. He said the scheme appears designed to benefit insurance companies rather than the growers.
The MP suggested that the State government should provide relief for weather-related losses instead of collecting premiums. He demanded that insurance companies distribute their saved amounts to farmers affected by adverse weather and said farmers would stage a protest against the injustice.