Punjab Govt. hikes Compensation for Damaged Crops by 50%

Punjab govt. has taken an important decision to enhance the compensation amount for damaged crops of farmers to Rs. 12,000 per acre.

Facts :

• Now all the farmers who suffer heavy losses due to crop damage by any natural calamity will get assistance at Rs. 12,000 per acre.
• This increase in compensation amount is around 50% over the previous scheme. Govt. will implement this landmark decision from 20 June 2017.
• The state govt. has enhanced the compensation amount for damaged crops of 76% to 100% due to adverse weather conditions from Rs. 8,000 per acre to Rs. 12,000 per acre.
• Previously, the compensation amount was increased to Rs. 8,000 per acre for damaged crops of 76% to 100% on 1 April 2015.
• The following rates will now remain applicable for the farmers who suffers crop loss on the basis of percentage of crops being damaged:-

Percentage of Crops Being Damaged (% Crop Loss)                                                      Financial Assistance Amount
26% to 32%                                                                                                                                Rs. 2,000 per acre
33% to 75%                                                                                                                                Rs. 5,400 per acre
76% to 100%                                                                                                                              Rs. 12,000 per acre

Analysis :

• Punjab govt. has taken this decision to ensure that the state govt. is fully committed towards the welfare of small and marginal farmers.
• Govt. will also take certain other steps to bring farmers out of the agarian crisis. This will lead to the overall development of the state.
• To uplift the peasant community, the Centre should implement the Swaminathan Commission report in letter and spirit under which the MSP is to be determined at the cost of production plus 50 per cent.
• The state had not adopted the Prime Minister Fasal Beema Yojana because it did not suit the farmers of Punjab due to certain infirmities like lower indemnity level and non-provision of increase in cost of cultivation during drought and loss due to unseasonal rains in rabi (winter sown) crop.
• This enhanced compensation amount will provide a big relief to the farmers who have suffered heavy crop damage due to bad weather.
• Punjab govt. has taken this decision in order to ensure that the farmers life becomes easy and is a next pro-farmer step after the Debt Waiver Scheme / Kisan Karj Mafi Yojana.
• The state government has now decided to constitute a committee under the farmers’ commission to study the insurance schemes related to agriculture and for setting up Punjab Agriculture Insurance Corporation in the state.

.

By: Harman Sandhu