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New crop insurance policy likely in Budget

January 25, 2023 09:59 pm | Updated January 26, 2023 10:45 am IST - hyderabad

The State government is likely to announce a new crop insurance policy in the coming budget to overcome the complaint that the farmers were exposed to the threat of financial loss in the absence of any insurance for crop loss presently.

The government had been contemplating its own insurance scheme for farmers after withdrawing from the Prime Minister’s Fasal Beema Yojana in 2020 on the ground that it benefitted insurance companies more than the farmers. The Centre turned a blind eye to the regular hike in premium announced by companies. The payout by companies was far less than the claims settled by companies, it was claimed.

It was also claimed that the weather-based Central scheme took mandal and not village as unit to estimate crop loss on account of adverse extreme conditions. The companies did not comply with the norm to make immediate payment of 25% of expected compensation in case of crop loss due to hailstorm and wind.

Therefore, the State government had explored the West Bengal model of insurance for farmers from this kharif. The West Bengal government bore the entire premium on behalf of farmers for foodgrains and edible oil crops. The farmers were supposed to pay 4.85% of the value of potato and sugarcane crops. Also, the Telangana government wanted farmer and not acreage as unit for estimating crop loss.

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