Khammam: Many agricultural experts criticize shortcomings in the implementation of Prime Minister Fasal Bima Yojana (PMFBY) while extending crop insurance to compensate for crop losses. They argue that PMFBY is more beneficial to insurance companies than to farmers because most insurance companies do not pay claims under one pretext or another.
Farmers demanded that the system be farmer-friendly and science-based, or move to DBT (direct transfer of benefits).
Mandadapu Sudhakar, Chairman of PACS and Jalamitra Award recipient, said, “Insurance companies have earned `40,000 crore from PMFBY since its inception. The premium paid by farmers and the central government exceeds the amounts paid to farmers for crop losses. The scheme is a cash cow for insurance companies. Instead of paying a premium, it makes sense that the government’s share goes directly to the farmers.”
PMFBY was introduced on February 16, 2016 and had 13 insurance companies on the panel. Businesses have been paid ‘1.59 lakh crore for the past six years, while farmers have only received claims of ‘1.19 lakh crore.
AL Dora, a farmer, said: “It is better if the premium amounts are paid to the farmers.
Telangana government paid 989 crore premium for one season in 2021 while insurance companies paid 817 crore for crop loss. This implies that insurance companies earned 172 crores in one season from one state.
Under this scheme, farmers pay 2% of the sum insured as their share of the premium for kharif crops and 1.5% for Rabi.
B Rambabu said, “The questions asked by company officials when settling claims are atrocious and in bad taste.”
He said like those in Telangana, farmers in states like Haryana, Uttar Pradesh, Maharashtra and Gujarat are against the scheme.