Title: Tamil Nadu Govt allocates Rs. 560 Crore as Compensation for Crop Losses in the 2022-2023 Samba Season
Date: [Current Date]
Chennai: In a bid to protect farmers’ livelihoods from the adverse effects of natural disasters, Tamil Nadu Chief Minister M. K. Stalin has announced a compensation of Rs. 560 crore for crop loss suffered during the 2022-2023 Samba season, as part of the government’s crop insurance scheme.
Under the Crop Insurance Scheme implemented in Tamil Nadu, various insurance companies including Agricultural Insurance Corporation of India, IBCO-Tokyo, Bajaj Alliance, HDFC Ergo, and Reliance General Insurance provided coverage in 37 districts through 14 packages during the specified season.
The scheme insured over 24.45 lakh acres of Samba paddy cultivated by around 11.20 lakh farmers. The total insurance premiums amounted to Rs. 2,319 crore, with the Tamil Nadu government contributing Rs. 1,375 crore as insurance premium subsidy, the Union government providing Rs. 824 crore as insurance premium subsidy, and farmers contributing Rs. 120 crore as their share.
Despite achieving a total paddy cultivation of 46 lakh metric tonnes during the 2022-2023 Samba season, over 33 percent of the cultivated area spanning Ramanathapuram, Sivagangai, Pudukottai, Tenkasi, Virudhunagar, and Thoothukudi districts was affected by moderate drought caused by deficient North-East Monsoon rains. In response, the Tamil Nadu government disbursed Rs. 181.40 crore from the Disaster Relief Fund to support 1,87,275 affected farmers on 4th September 2023.
Furthermore, to provide compensation for the loss of yield resulting from natural hazards such as drought, floods, storms, and unseasonal rains, the government will be depositing a total of Rs. 560 crore directly into the bank accounts of approximately 6 lakh eligible farmers. These funds will be disbursed to farmers in the districts covered by the Crop Insurance Scheme according to its terms and conditions.
This initiative by the Tamil Nadu government aims to alleviate the financial burdens faced by farmers due to crop losses caused by natural disasters. By providing compensation, the government hopes to safeguard the welfare and sustain the livelihoods of farmers, thereby supporting the agricultural sector in the state.
The government’s efforts to bolster the crop insurance scheme and provide timely assistance underscore its commitment to addressing the challenges faced by farmers in Tamil Nadu.