Annadata Sukhibhava Scheme Shifts Premium Burden to Farmers

Kurnool: Farmers who benefited from the free crop insurance scheme are now facing a financial burden. The state government has discontinued the scheme starting this Kharif season.

Farmers have been instructed to pay the insurance premium themselves. The deadline for this was set for Tuesday. Worse, the premium amounts have increased compared to previous years.

Thanks to the implementation of the Annadata Sukhibhava scheme, farmers now receive Rs 20,000 annually, but they have to bear the burden of paying the crop insurance premium. This support is seen as insufficient to cover the cost of premiums, particularly for small and marginal farmers.

The government has officially withdrawn the free crop insurance scheme from the 2024–25 Rabi season. Though the Annadata Sukhibhava was promised under the TD-led alliance’s Super 6 guarantees during the elections, its implementation has been delayed. Farmers say the cash transfer by itself does not make up for the loss of free insurance.

Farmers are required to pay their share of the premium under the Pradhan Mantri Fasal Bima Yojana and the weather-based crop insurance scheme. They are uncertain about the compensation they would receive in case of crop damage.

Ch Kotireddy, state president of the consortium of Indian farmers’ associations, said the decision placed a heavy burden on the farming community. “While farmers are receiving `20,000 under Annadata Sukhibhava, the premium amounts, especially for crops like cotton, are too high.”

Cotton is cultivated in 2.94 lakh hectares in Kurnool and in 18,827 hectares in Nandyal district. Farmers have to pay nearly `5,000 per hectare, resulting in a cumulative premium burden of over `125 crore across the combined Kurnool region.

Although some relaxation is provided in farmer share under PMFBY, farmers in Nandyal are still paying higher rates. Premiums vary depending on the crop — 2 per cent for paddy, maize and red gram; 1 per cent for green gram, jowar, bajra, castor, and onion; 3.2 per cent for chilli; and 4 per cent for cotton.

For example, under WBCIS, banana farmers in Nandyal have to pay `8,875 per hectare to insure for a coverage of `1.97 lakh. The government has also issued deadlines: July 15 for WBCIS, July 31 for PMFBY and August 15 for paddy.

Farmer C Maddileti from Nandikotkur said that under the previous YSRC term, crop insurance was provided free of cost from 2020–21, automatically covering all notified crops. He urged the current government to reinstate the free scheme, warning that uncertainty in compensation and high premiums could make the insurance system ineffective and unaffordable for many.

The shift to a contributory model has left farmers worried not just about upfront payments, but also about whether they would receive timely compensation during times of loss.