As climate change plays mischief in every part of the globe, it is high time to take effective measures to protect farmers interests. Any delay in securing a better future for farmers may prove costly as it will not only disturb the supply chain of food grains, but will also force them to opt for a relatively risk-free profession to manage two square meals a day. In this context, an effective insurance system may prove useful as it will ensure no financial loss for farmers in case of any damage to crops. Although there are a number of insurance schemes for farmers in India, they have failed to hold up their end of the agreement. More often than not insurance companies simply refuse to pay compensation on flimsy grounds. Recently, 29,000 farmers from Haryana’s Hisar district have been denied their dues as insurance companies have reportedly found discrepancies in land records, crop-sowing certificate or tenant declaration, etc. It’s a mystery why such mismatches were not noticed when the insurance companies accepted premiums from the farmers in the first place. It appears that it had deliberately been overlooked to rob poor farmers on the pretext of securing their future. Strong action should be taken against such companies to save the country’s farming community from being duped.
The double whammy for farmers of first losing their crop due to natural calamity and then running from pillar to post in pursuit of compensation, can only be stopped by banning the entry of private players in the crop insurance sector. As private companies are driven by profitability, it is difficult for them to take a sympathetic view towards farmers, who are financially ruined if their crops get ravaged. According to a rough estimate, private insurance companies have earned a gross profit of INR 15,792 crore in two years by denying compensation to the farmers under Fasal Bima Yojana (FBY). So, to look after the interests of farmers the government should make way for the entry of public undertakings in this sector as such nationalised companies are not burdened with the task of showing profits in their balance sheets. Such a step will be helpful for the government too as demands for waiving farm loans will not be raised, which puts an unnecessary burden on the country’s economy.
The denial by private insurance companies in paying compensation to farmers also highlights the limitations of the neo-liberal economic policy as it ignores the welfare aspect of the state. After economic liberalisation in India, these profit-driven companies entered the Indian market making promises of lucrative benefits. But such promises turned out to be hoaxes at the time of compensating losses. The government should not allow the Indian farming community to fall prey to these companies. Instead, our own mechanism should be adequately strengthened to protect Indian agriculture and farmers from any type of losses, especially in the wake of the climate threat.