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LATEST NEWS UPDATES | Crop insurance flaws fuel farm distress -Sayantan Bera

Crop insurance flaws fuel farm distress -Sayantan Bera

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published Published on Nov 21, 2019   modified Modified on Nov 21, 2019
-Livemint.com

* At a time when rural incomes are sliding, the only existing safety net for the farmer is failing
* High costs of reinsurance due to erratic weather, a spike in claims, political interference in crop loss estimation are reasons that forced some insurers to leave the business

NEW DELHI:
Santosh Kumar’s first brush with insurance left a bitter aftertaste. A farmer’s son, 26-year-old Kumar from Bihar’s Araria district felt betrayed when hundreds of farmers from his village, including his own father, were denied what was due to them. In August 2017, Kumar’s village in Palasi block of Araria was flooded by an overflowing Kosi river. Much of the paddy crop got washed away.

Thankfully, for the first time—without even knowing about it—around 250 farmers had gotten themselves covered under the Prime Minister’s flagship crop insurance scheme. Premiums had been automatically deducted from their crop loan accounts held by a public sector bank without their consent. However, after the floods, it seemed like a blessing.

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Livemint.com, 19 November, 2019, https://www.livemint.com/news/world/crop-insurance-flaws-fuel-farm-distress-11574185759756.html


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