Opposition Congress and BJP cornered the State Government on exploitation of farmers by insurance companies engaged under Pradhan Mantri Fasal Bima Yojana (PMFBY) in the State Assembly on Saturday.
The members expressed concern over a mess created by the insurance companies and taking the farmers for a ride, during a discussion on adjournment motion moved by the Congress in the House.
However, the ruling party MLAs held the Centre responsible for the mess and delay in payment of compensation.
Congress MLA Santosh Singh Saluja said the State is witnessing frequent droughts and farmers were facing crop loss regularly, but insurance companies were not paying compensation in time. That's why they are suffering, he added.
Congress Legislative Party Leader Narasingha Mishra pointed out that the concerned Minister in his statement had admitted that farmers were yet to get compensation of the year 2020-21.
“The crop cutting process which is the main criterion for paying compensation is detective. In many places only paper transactions are done, not more than that,” Mishra told.
Mishra also urged the State Government to write to the Centre to withdraw engaging private insurance companies. Only when the Government owned companies are assigned, they pay compensation to farmers in due time, he said.
He also expressed concern over the fact that banks, cooperative organisations were not coming forward to provide crop loans to the farmers.
BJP Member Mukesh Mahaling wanted to know from the Government when the pending compensation of the farmers would be disbursed.
Rengali BJP MLA Nauri Nayak said farmers have yet not got compensation of 2018-19 because of a defective process. That's why as many as 47% farmers are in loan burden and taking loans from moneylenders at as high as 30-50%, he stated.
BJD member Bhupinder Singh blamed the Centre for the problem and said the State Government had made special budgetary provisions for farmers’ development.
BJD MLA Debesh Acharya said insurance companies had taken an escape route while the Central Technical Advisory Committee had not settled insurance dues.
While replying, Cooperation, Food Supplies and Consumer Affairs Minister Atanu Sabyasachi Nayak said there were some justified claims from Balangir, Bargarh and other districts and the claims had been submitted to the Central Government.
He said Odisha was providing 58% loan through Cooperative and Government banks on priority basis to farmers than States providing only 18-19%. Besides, the State Government has provided 42 lakh Kissan Cards and agriculture loans to 36 lakh farmers, he told.
The Minister further informed that the loan size and number of beneficiaries had increased over the years in the State. While Rs 11,000 crore loan was disbursed to 30 lakh farmers in 2017-18, it increased to Rs 15,189 crore for 34.40 lakh farmers in 2020-21, he said.
The State Government has written two letters on July 4 and 13 to the Centre to direct insurance companies to pay compensation to farmers without delay, he informed.