Start own crop insurance firm: S Ramadoss urges TN govt
It may be noted that DT Next carried a detailed story exposing the plight of farmers dependent on crop insurance compensations.
PMK founder S Ramadoss (File)
CHENNAI: Pointing out that several farmers were given only Rs. 10 per acre by crop insurance firms as compensation, PMK founder S Ramadoss urged the State government to start a crop insurance firm and safeguard farmers.
It may be noted that DT Next carried a detailed story exposing the plight of farmers dependent on crop insurance compensations.
In a statement, the senior leader said that despite collecting Rs. 9,484 per acre as a premium for crop insurance, the firms have paid only Rs. 10.41 per acre.
"It is condemnable that insurance firms are turning into daylight robbers. It is not the first time that farmers are compensated poorly. In the 2021-2022 samba season, 90 per cent of the farmers were denied compensation. The remaining 10 per cent of farmers received Rs. 50 to Rs. 100. It is saddening that farmers are not given at least the premium amount," he said.
He alleged that the private insurance firms are fleecing the farmers rather than safeguarding them. As per calculations, insurance firms would not suffer losses even if compensation was given to farmers. "But, after collecting Rs. 2,319 crore as premium in 2022-2023, the insurance firms paid only Rs. 560 crore as compensation. In 2022-2023, 24.25 lakh acres of samba crops were cultivated. Of the total, only 7 lakh acres are affected. If the insurance firms compensate by giving Rs. 32,500 per acre, they will face loss," he noted.
In 2021-2022, the firms collected Rs. 2,413 crore as premium amount by paying only Rs. 481 crore as compensation. They made a profit of Rs. 1,932 crore.
"Every year, the firms only benefit, not the farmers," he noted.
He added that while contemplating the implementation of crop insurance schemes during the last five years, it is clear that the schemes are not for the farmers but for the insurance firms.
"Insurance schemes should be for the firms. They should help the farmers. The State government should start a crop insurance firm to safeguard farmers," he urged.
