Agriculture Minister Assures Full Compensation for Farmers Under Crop Insurance Scheme

Union Agriculture Minister Shivraj Singh Chouhan has made a strong commitment to ensure that farmers receive their full rightful compensation under the Pradhan Mantri Fasal Bima Yojana (PMFBY). Addressing concerns about extremely low claim payouts reported in some cases, such as amounts as low as ₹1, ₹3, ₹5, or ₹21, the minister stated that such practices are unacceptable and a "mockery" of farmers' rights. He has initiated a detailed investigation into these discrepancies and issued strict instructions to insurance companies and officials to expedite and ensure prompt payment of claims.

Furthermore, the minister announced that state governments would provide immediate compensation for crop losses, with additional financial support coming from the National Disaster Response Fund (NDRF). If a state government requests a special relief package after assessing damages, the central government has assured full support. Minister Chouhan personally engaged with farmers from Maharashtra to understand their issues and ensure claim settlements are accurate, emphasizing that farmers should not face any difficulties.

Impact This news is highly positive for the agriculture sector and related financial services. It signals increased government focus on farmer welfare, potentially leading to greater trust and participation in insurance schemes. For insurance companies involved in PMFBY, it means increased scrutiny and a need to streamline claim processes, which could impact their operational costs and profitability in the short term but build long-term credibility. The assurance of government support through NDRF also provides a safety net for farmers and agricultural economies during adverse weather events. Rating: 8/10

Difficult Terms: Pradhan Mantri Fasal Bima Yojana (PMFBY): A government-backed crop insurance scheme in India designed to provide financial support to farmers suffering crop loss or damage due to natural calamities, pests, and diseases. National Disaster Response Fund (NDRF): A fund established by the Government of India for providing immediate relief to victims of disasters like cyclones, floods, earthquakes, etc., that require immediate financial assistance. Crop Cutting Experiment: A scientific method used to estimate crop yields, which forms the basis for determining crop losses for insurance claims.