The drought of 2016, billed in certain quarters as the worst that Tamil Nadu has faced in 140 years, appears to have provided a better deal in terms of relief, at least to some sections of farmers. This time around, farmers received a higher amount of compensation compared to 2012.
“Several times” is the crisp reply of a prominent farmer leader, who belongs to the Opposition and hails from the Cauvery delta, when asked about the difference in relief provided compared to five years ago.
As in the past, the assistance being provided to farmers has two components — the amount disbursed directly by the government and the compensation from insurance companies in the form of crop insurance.
What is different between then and now is the Pradhan Mantri Fasal Bima Yojana (PMFBY), say the farmer leader and S. Ranganathan, leader of the Cauvery Delta Farmers’ Welfare Association. According to these two farmers, the scheme, launched in January 2016, has been designed in a far better way than its previous variants.
In 2012, the government assistance was handed only to those farmers who had suffered over 50% crop loss, whereas now, the extent of the loss is lower, at 33%. Earlier, a sum of ₹15,000 per acre was given to those in the delta, including a sum of ₹10,000 that was adjusted later towards the compensation paid by insurance firms. Farmers in the remaining parts of the State had netted ₹5,000 per acre with virtually little coverage under the then insurance scheme, says a senior official of the State Agriculture Department. In 2012, around 21.46 lakh farmers got the government’s direct drought relief assistance of about ₹1,188 crore.
This time around, those who raised paddy or irrigated crops were given ₹5,465 per acre. A similar norm was followed for those engaged in horticulture and sericulture. But the government has restricted the payment of relief money to only up to five acres, irrespective of the size of landholding. Compensation was provided even to farmers who own more than five acres, points out K. Satyagopal, Principal Secretary/Commissioner of Revenue Administration, adding that in total, around 25.35 lakh farmers have been covered and the amount disbursed stands at ₹1,818 crore.
Tamil Nadu’s feat
With regard to the compensation from crop insurance firms, a sum of ₹78.64 crore was provided to 2.47 lakh farmers five years ago under the then National Agricultural Insurance Scheme, whereas in 2016, the amount sanctioned thus far is around ₹1,883 crore, and is likely to touch the ₹2,500-crore mark by the time that all claims are processed, says the Agriculture department official.
As many as 8.4 lakh farmers have benefited thus far. In total, around 15 lakh farmers were brought under the insurance net last year. At the all-India level as well, Tamil Nadu has achieved the feat of getting the maximum number of claims sanctioned under the insurance scheme, the official says, adding that such a performance is essentially down to the State government’s “sustained interest and attention.”
Overall, Mr. Ranganathan says, the compensation from the government and the insurance companies has provided a breather to the farmers. At the same time, there is scope for improvement in the insurance scheme. More assessment officers are needed as the scheme requires inspection of the crop at different stages of growth.
Mr. Ranganathan has also urged the Centre to give up the policy of involving private insurance companies and engage only public sector firms.
However, there is also another side to this story. Pointing out that he is not eligible for coverage under the insurance scheme, the Cuddalore district secretary of a farmers’ body, S. Venkatesan, says the feedback from fellow farmers in the district is that the scheme has not been beneficial to them. There are also complaints of lack of information about the payment of compensation.