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India has the world’s biggest crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), in terms of number of farmers covered. PMFBY is implemented by five public sector and 15 private insurance companies. However, it is riddled with challenges. In the past eight years of its implementation, 568 million farmers have been enrolled and 232.2 million farmers have received claims. Around 70 per cent of gross cropped area in India is not covered under insurance, leaving it unprotected.
Media reports highlight instances where insurance companies have dishonoured PMFBY terms and courts have fined insurance companies for harassing farmers. “If insurance companies realise beforehand that there are losses in particular season, they return farmers’ premium to avoid giving any compensation. This has happened multiple times in Haryana,” says Ratan Singh Maan, state president, Bhartiya Kisan Union, Haryana. “In several instances, insurance claims were paid to farmers who had not suffered crop loss but had nexus with officials. In Raichur district, three such fraud cases came to light after the government’s investigation. The matter is in the court now,” says Chamras Mali Patil, state honorary president of Karnataka Rajya Raitha Sangha.
“Crop insurance can become popular among farmers, if the insurance unit is made at farmer level instead of village level and farmers are able to choose from all available insurance companies. It will increase competition among companies,” says Dharmendra Malik, national spokesperson of Bhartiya Kisan Union (Arajnaitik), Uttar Pradesh. “Currently, the insurance unit is at the level of the gram panchayat. Samples for loss estimation collected at this level are not large enough to capture the scale and diversity of crop losses,” says Malik. As per the claim calculation formula used under PMFBY, the scheme may not prove beneficial for farmers of climate-vulnerable regions like Marathwada and Bundelkhand that face repeated crop losses because of factors like low indemnity levels, low threshold yields, low sum insured and default on loans, resulting in low compensation.
While there are provisions for relief distribution against crop damage to affected farmers, whether they will get it or not depends on several factors. “The Union government has notified 12 disasters for providing relief which include cyclone, drought, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, frost and cold wave. Relief is provided to farmers, where crop loss is 33 per cent or above,” says Anil Gupta, professor, policy and strategies, National Institute of Disaster Management, New Delhi.
But calamities such as unseasonal change in climate and heatwave, which cause crop damage, are not notified as disasters under the National Disaster Management Fund of the Centre. In case of a disaster, states are primarily responsible for providing relief through the State Disaster Management Fund (SDMF). The relief amount also varies based on irrigated area, rainfed area, small and marginal farmers and other parameters. For example, Rajasthan provide Rs 8,500 per ha for rainfed area and Rs 17,000 per ha input subsidy in assured irrigated area, where crop loss is above 33 per cent. The Delhi government has provision of Rs 50,000 per ha relief to farmers for crop damage.
States can reach out to the Centre for funds in case of a disaster of severe nature, and if adequate funds are not available in SDMF. However, declaration of calamity is often ad hoc in nature, influenced by political factors. At times, the relief mechanism struggles with issues like crop loss estimations to determine the amount. During the 2023 drought, the Karnataka government estimated losses to the tune of Rs 35,162 crore. However, the Centre released relief of Rs 3,454 crore, after the state moved the Supreme Court.
Farmers also need reliable weather forecast-based agro-advisories. As per the India Meteorological Department (IMD), agro-advisories reach an estimated 27 million farmers, which is only 18 per cent of the 146.45 million farm households. However, officials tell DTE that the actual number could be much lesser. And those who receive the advisories doubt its accuracy. “There is significant variation in weather within the block and even within a panchayat. So farmers should be provided forecast at panchayat level,” says Sudhir Kumar, a farmer from Baghpat, Uttar Pradesh.
By choosing diverse foods grown with no or less chemicals, consumers can also help scale up climate-resilient agriculture, while enhancing their own wellbeing. Krupa, president of regional cooperative organic farmers associations federation, Davangere and Chitradurga district, says, “Demand for climate-friendly food will grow if the consumer is aware about diverse foods which are not only good for health but also benefit environment and climate. Farmers will be happy to grow diverse food if there is more demand. This shift towards greener agriculture is a win-win for everyone.” “Economic Survey 2023-24” clearly highlights that erratic monsoon, climate change, crop disease doubled food inflation in three years. Adapting to the climate impact on agriculture is therefore critical not for farmers’ livelihoods but for the food and nutritional security of the entire country.