Despite the government's repeated promises to support Indian farmers through various schemes, the ground reality remains grim. The recent report about ₹5,405 crore in pending crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) reveals the struggles faced by farmers in getting timely compensation for their losses. This issue is not just about unpaid money but also highlights the deeper problems in India's agricultural system.
The PMFBY was launched as a flagship scheme by the government to protect farmers from financial losses due to crop failure. It aimed to provide insurance cover at a very low premium. Farmers were required to pay only 1.5% to 2% of the total premium based on the type of crop they grew. The rest of the amount was to be equally shared between the Centre and state governments. This idea seemed promising, especially for small and marginal farmers who depend entirely on their crops for income.
However, the recent data presented in Parliament by Agriculture Minister Shivraj Singh Chouhan shows that nearly 6% of all applications for claims under PMFBY are still pending. These claims have been building up over multiple seasons and have not been cleared even up to the kharif (summer-sown) season of 2024. This is a serious concern because delayed payments defeat the purpose of crop insurance, which is meant to offer timely help.
There are several reasons why these claims remain unpaid. Firstly, disputes between insurance companies and state governments are common. Some states delay sending proposals or fail to release their share of the subsidy on time. In some cases, banks also fail to update insurance records properly. As a result, the insurance companies do not process the claims. This creates a long and frustrating wait for the farmers who are already under stress due to failed crops or natural disasters.
In addition to these issues, there is another major challenge. Many tenant farmers and sharecroppers do not own the land they cultivate. Until recently, they were not eligible to receive insurance benefits under PMFBY. These farmers are among the most vulnerable, and excluding them from the scheme made their situation even worse. Thankfully, the government has now allowed landowners to authorize these farmers to receive benefits, which is a positive step forward.
Despite such changes, the reality is that many farmers are losing trust in the system. When promises are not fulfilled and payments are delayed, they start feeling abandoned. Several reports show that the number of farmers enrolling in the PMFBY has dropped in some regions due to dissatisfaction. They feel that the process is slow, complicated, and unfair.
The life of an Indian farmer is already full of uncertainty. From erratic weather and pest attacks to market price crashes, there is little that farmers can control. In such a situation, the least the government and insurance companies can do is ensure that when farmers face losses, they get the compensation quickly and fairly.
It is important for both state and central governments to take responsibility and ensure proper coordination. Data collection must be improved, banks and insurance firms must be held accountable, and the process must be made transparent. Farmers should not be left waiting for money that they rightfully deserve.
The future of Indian agriculture depends not only on better seeds and fertilizers but also on strong support systems like insurance. Without timely help, farmers will continue to struggle, and food security in India will always remain at risk. It is time we treat our farmers not just as vote banks but as the backbone of the nation they truly are.
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