Demonetization Hits Crop Insurance Scheme At Maharashtra
The demonetization has taken its toll on a number of agendas and occupations. One among them is the farmer and their crop insurance scheme. Maharashtrian farmers had already been in a lot of trouble with their crops not being profitable. However, the crop insurance scheme was supposed to provide them some relief. This was yet to happen when the demonetization move practically shook things up.
Apparently, there are lakhs of farmers who are fighting crop failure and drop in the state. Due to the currency ban, they have missed the deadline which was supposed to end on November 9. Apparently the worst hit had been for the horticultural farmers.
Urgent measures taken
The government had declared that the last date will now be extended to November 10. But this did not have any effect on the situation at all. Most of the farmers missed the deadline to deposit their premiums – since they were unable to withdraw their cash from bank.
Hence the state governments had to arrange an urgent meeting to address this issue. It was noted that the scheme mainly applies to the horticultural farmers and the Rabi and kharif farmers. While the latter were able to enroll themselves within October 31, the horticultural farmers missed the deadline. Since they were in possession of 500 and 1000 notes, they had to stand in long queues to withdraw their money. Hence they could not deposit it.
Apparently the government has now extended the crop insurance premiums to be deposited within 15 days.
What can be the impact of missed deadlines?
- If the country fails to include all farmers within this cap then there can be far reaching implications. Currently they have the ambition to increase crop area from 23 per cent to 50 per cent within 3 years. This might not be possible if all farmers are not included in this scheme.
- However, the opposition argued that the basic structure of the crop insurance scheme itself is flawed. This means that they argue the state does not compensate the farmers according to the area that has been destroyed. However, missing out on the deadlines would further remove them from this benefit.
- As many as eighty five lakh farmers have been under this crop insurance scheme. Removing them at this stage would mean that the farmers will suffer damage over years of this insurance scheme. They would not receive a penny for the amount they have been depositing since 2000.
Furthermore crops suffer because of transportation
Agriculture involves a lot of steps before it can reach the masses. One of the vital steps is carrying of crops through trucks. Due to the low availability of cash in the form of new notes, the transportation has suffered greatly.
This is because the average cost of moving a truck from one part of the country to another is Rs. 80,000 to 1 lakh. The truck drivers are not acquainted with any other form of payment other than cash. However, over night demonetization has them baffled on the roads.
This is why many traders could not afford the costs to move the products across the country. According to experts, things are a little bit smoother in the urban areas. But in the rural areas, especially the remote lands where the crops travel through to get to the urban areas are disturbed.
They do not have adequate means to get across the state.
Even then the matter remains pretty much under control. The government officials at Maharashtra said that if the situation was much worse, there would have been an incessant price hike. However that was not the case. Therefore they assume that the markets are working steadily.
|1||Districts have been worse hit at||Marathwada|
|2||Beed District insurance disbursed||Rs 893 crore|
|3||Marathwada hit funds of||Rs 4205 crore|