Crop Insurance Scheme Proved to be a Deception for Farmers: Hooda

Chandigarh: Former Chief Minister and Leader of the Opposition Bhupinder Singh Hooda on Thursday said that the crop insurance scheme has proven to be nothing more than a deception for farmers.
“Grand claims were made when the scheme was launched, yet today, the number of beneficiaries has dropped to less than half of the original figure. This time, the government itself failed to provide farmers with adequate time to register for the Kharif season. The notification, usually issued between June 20 and June 25, was released on July 24; consequently, 11.20 lakh farmers were given barely a week to complete their registration,” he said.
“It appears that not only the farmers but the government itself has become disillusioned with this scheme. The way the scheme has operated so far makes it clear that farmers have derived no benefit whatsoever; instead, thousands of crores of rupees were siphoned off from them to fill the coffers of private companies,” he added.
“As a result, the number of beneficiaries under this scheme, which stood at approximately 24 lakh in 2018-19, has dwindled to just 11 lakh by 2024-25. There are also concerns that the limited timeframe, server outages, and bureaucratic formalities will consume so much time that many farmers will be unable to even submit their applications,” he pointed out.
Hooda has demanded an extension of the application deadline. He urged the government to prioritize the interests of farmers rather than benefiting private companies and to provide immediate compensation when needed.
He called for the immediate disbursement of all outstanding compensation. Furthermore, he demanded that the BJP government explain why the compensation amount under this scheme is decreasing annually while the premium amount continues to rise.
Ramnath Thakur, Minister of State for Agriculture and Farmers’ Welfare, stated that ₹2,518.66 crore was paid out under crop insurance in Haryana during 2022-23, a figure that dropped to just ₹265.23 crore in 2023-24. In contrast, during 2023-24, the insurance company received a total of ₹648.1 crore—comprising ₹154.9 crore from farmers, ₹246.6 crore from the Central Government, and an equivalent share from the State, resulting in a net profit of ₹382.9 crore for the company.
Similarly, in 2024-25, this payout amount decreased further to ₹262.6 crore. However, considering the premiums collected—₹280.3 crore from farmers, ₹388.2 crore from the Central Government, and an equal share of ₹388.2 crore from the State (based on a 50% contribution)—the insurance company received a total of ₹1,056.7 crore. Yet, farmers received only ₹262.6 crore, meaning the insurance company made a net profit of ₹794.1 crore.
This makes it evident that insurance companies are exploiting both the farmers and the public exchequer under the guise of this scheme. The PM Fasal Bima Yojana has impoverished farmers while enriching insurance companies.
Insurance companies deduct premiums from Haryana’s farmers on schedule, but when it comes to paying compensation, neither the timeline nor the payout amount is fixed. Furthermore, farmers have no representation on the committees responsible for assessing crop loss. The government and insurance companies act arbitrarily in settling claims, and it is the farmers who ultimately bear the brunt of this.