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Crop insurance is not the perfect medication for farmers, says economist -Nagesh Prabhu

-The Hindu

A book brought out by NABARD, authored by R.S. Deshpande, says Pradhan Mantri Fasal Bima Yojana carries the baggage of the earlier failed crop insurance schemes

A book on the theme “Rainfed Agriculture and Droughts in India” (2022) brought out by the National Bank for Agriculture and Rural Development (NABARD) argues that crop insurance is not a “perfect medication” any more for farmers hit by natural calamities such as floods and droughts and it has become more an institution governed by the private interests.

NABARD, which brought out the book authored by economist R.S. Deshpande, as part of its Azadi Ka Amrit Mahotsav series, said that Pradhan Mantri Fasal Bima Yojana carries along with it the baggage of the earlier failed crop insurance schemes. The private insurance companies have been given full authority to insure and pay the indemnity, and they get the State support in this operation.

Crop cutting experiment

Moreover, the insurance firms follow an area-wise approach and this would depend on the crop-cutting experiments or the meteorological data which causes delay in the payment of insurance amount to farmers. In the event of the farmers’ kharif crop failure, she/he would not be able to undertake cultivation immediately in the second season due to delay in claiming the insurance amount, according to Prof. Deshpande, former Director, ISEC, Bengaluru.

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