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Gujarat pays Rs 12,389 crore for crop losses, but Rs 185 crore insurance dues remain unpaid

Farmers await pending insurance payments as government cites administrative delays; Congress slams inaction, claims lakhs yet to receive refunds from discontinued scheme.

Dilip Singh Kshatriya

Gujarat Agriculture Minister Rajivji Patel informed the Assembly that the state has disbursed over Rs 12,389 crore to 99.43 lakh farmers over the past five years to compensate for crop losses caused by unseasonal rains and windstorms. However, the government admitted that rs 185.31 crore in insurance premiums under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for Kharif 2019 remains unpaid due to administrative delays.

The latest compensations follows heavy rains during Kharif 2024, which severely impacted crops such as groundnut, cotton, soybean, moong, urad, tur, vegetables, and fodder in Junagadh and Porbandar districts. A survey identified 18,023 affected farmers in Junagadh and 50,206 in Porbandar, and the government has transferred over Rs 100 crore directly to 68,229 farmers’ bank accounts.

Despite the Gujarat government’s claims of compensating farmers with crores of rupees for crop losses, it admitted in the Assembly that Rs 185.31 crore in insurance premiums under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for Kharif 2019 remains unpaid. Responding to a query from Congress MLA Shailesh Parmar, the government attributed the delay to "administrative reasons."

Criticising the delay, Gujarat Congress Kisan Cell President Pal Ambaliya alleged that farmers’ money is stuck in the PMFBY scheme. “The scheme, launched in 2016, was abruptly discontinued by the government on August 10, 2020. Lakhs of farmers are still awaiting their dues, caught in a dispute between the government and insurance companies,” he said.

Ambaliya further stated that farmers have repeatedly approached district collectors and filed complaints, but no action has been taken. He also pointed out that while the government stopped paying premiums in 2019, 12 lakh farmers in Gujarat still paid Rs 450 crore in premiums for 2020-21.

“How can a scheme be discontinued after farmers have already paid? It has been five years, and they have not received a refund, let alone interest. The government has failed both farmers and the insurance company,” he alleged.

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