MP B.Y. Raghavendra raises questions over effectiveness of weather-based crop insurance scheme

Shivamogga MP B.Y. Raghavendra has questioned the necessity of the weather-based crop insurance scheme, citing the meager compensation received by areca nut farmers in the district. He expressed his dissatisfaction on this issue while speaking to reporters after a meeting with district administration officials at the Deputy Commissioner's office in Shivamogga on Thursday.

According to a report by The Hindu, MP Raghavendra stated that 1,18,431 areca nut farmers in the district had registered under this scheme, covering a total of 53,848 acres of land. The total premium paid for this scheme was approximately ₹174 crore. In this amount, farmers contributed ₹34 crore, while the state government and central government provided assistance of ₹70 crore and ₹70 crore respectively.

Providing statistical details, the MP stated that despite a total sum assured of ₹689 crore, only ₹143 crore was paid to farmers as compensation. This amount is even less than the total premium amount. He alleged that insurance companies have saved approximately ₹31 crore from the premium amount. B.Y. Raghavendra said, "It seems that this scheme has been created not for the benefit of the farmers, but for the benefit of the insurance companies."

Making further serious allegations, he stated that there could be a nexus between the insurance companies and the Karnataka State Natural Disaster Monitoring Centre. This centre operates the rain gauge stations, whose records are essential for determining the insurance amount. According to the MP, these two institutions have jointly committed an injustice against the farmers.

Questioning the objective of the scheme, he suggested that instead of collecting premiums, the government should have declared direct relief for farmers suffering losses due to adverse weather. He added that last year too, insurance companies saved nearly ₹20 crore from the premium, and this year they have again saved ₹31 crore. He demanded that this saved amount be distributed among the farmers affected by adverse weather.

MP B.Y. Raghavendra warned that farmers would react strongly to this injustice and hold protest demonstrations.