Bengaluru: Naveen Kumar, 40, a small farmer in Hassan district, Karnataka, paid Rs2,400 as premium (Rs1,200 per acre) to insure his jowar crop last year.
The crop failed after deficient rains. But Kumar was covered—or so he thought. Earlier this year, he received Rs1,600 (Rs800 per acre) as compensation—33% less than what he paid in premium. He does not know the actual insurance amount.
“No farmer here knows the real reason. Local officials and the bank are also clueless. We got less than what we paid as premium,” Kumar said. He is among the state’s 7.5 million farmers now banking on a farm loan waiver announced by the state on Wednesday.
The government has agreed to waive crop loans worth Rs8,165 crore or up to Rs50,000 per farmer borrowed from cooperative banks. Cooperative banks have disbursed Rs10,736 crore while nationalized and commercial banks have lent over Rs42,000 crore. The waiver will benefit over 2.2 million of the state’s farmers. Read More....
The crop failed after deficient rains. But Kumar was covered—or so he thought. Earlier this year, he received Rs1,600 (Rs800 per acre) as compensation—33% less than what he paid in premium. He does not know the actual insurance amount.
“No farmer here knows the real reason. Local officials and the bank are also clueless. We got less than what we paid as premium,” Kumar said. He is among the state’s 7.5 million farmers now banking on a farm loan waiver announced by the state on Wednesday.
The government has agreed to waive crop loans worth Rs8,165 crore or up to Rs50,000 per farmer borrowed from cooperative banks. Cooperative banks have disbursed Rs10,736 crore while nationalized and commercial banks have lent over Rs42,000 crore. The waiver will benefit over 2.2 million of the state’s farmers. Read More....