Thousands of farmers in Maharashtra are yet to receive any financial support from the state’s crop insurance scheme, despite significant crop losses due to heavy rains and floods. Over 1.13 crore farmers experienced crop damage across 84,000 hectares. While the state government had announced financial aid worth Rs 31,000 crore, the crop insurance scheme has provided no relief.
The government previously had a ‘Rs 1 crop insurance scheme’. This was stopped after it was found that the scheme benefited insurance companies more than farmers, with many fake claims being made. A new scheme was introduced where farmers had to pay their full share. However, under this new scheme, the ‘crop cutting experiment’ is the sole criterion for compensation. Because these experiments are not yet complete for many affected farmers, no payments have been made.
Across the state, 74,000 crop cutting experiments were planned. So far, only 64,000 have been completed. Until these experiments are finished, farmers cannot receive any financial assistance. The state government’s agreement with the crop insurance companies prevents the government from taking strong action against them.
Even when the Chief Minister, Devendra Fadnavis, ordered immediate financial aid through the crop insurance scheme for farmers whose crops and land were washed away, no action has been taken. He had instructed that farmers whose crops were completely destroyed should be considered as having zero yield in their crop cutting experiments and receive 100% compensation. Agriculture Minister Datta Bharne also issued similar orders, but these have not been implemented.
Additionally, the state government had announced the ‘Krishi Samruddhi Yojana’ with an outlay of Rs 25,000 crore over five years, using the Rs 5,000 crore saved from the previous Rs 1 insurance scheme. This scheme aimed to boost infrastructure in the agricultural sector. However, no funds have been allocated to this scheme yet. The agriculture department has pre-approved projects worth about Rs 6,500 crore for the next three years under this scheme. Hopes are high that significant funds will be allocated during the ongoing winter session of the assembly in Nagpur. However, considering the state’s financial situation, it seems unlikely that the scheme will receive substantial funding.
Despite these challenges, Agriculture Minister Datta Bharne assured that efforts are being made to provide maximum support to farmers through the crop insurance scheme. He stated that payments would be credited to farmers’ accounts by the end of December. He also mentioned that changes would be made to the crop insurance scheme for the next year based on farmers’ demands to ensure they receive greater benefits.