TN farmers receive ₹3, ₹4, ₹5 and ₹10 as crop insurance disbursal

TAMIL NADU: The farmers of Boduvarpatti in Dindigul district received compensation cheques issued by the Dindigul Central Cooperative Bank Ltd for as little as Rs.5 and Rs.10.

The issue was brought up in the Legislative Assembly on Friday and several ministers admitted that such an error had occurred during disbursal of cheques in certain villages of Dindigul.

Former minister K Pitchandi alleged that the farmers in Dindigul received cheques of  Rs.5 and Rs.10 as relief from the insurance companies for the crop loss they suffered last year. “Karupasamy gets Rs.10 compensation after paying a premium of Rs 102 for insuring his one acre land. So does Thirumalaisamy, who got Rs.5 for his premium of Rs 50 for an acre of land,” the DMK leader said.

Minister for Cooperation Sellur K. Raju said that similar complaints have been raised by five farmers in Dindigul and one complaint was reported in Nagapattinam. “The collectors have been directed to look into the issue and take appropriate action,” he said.

According to the crop insurance scheme, in the event of crop loss, farmers are eligible to receive the following amounts as compensation:

• Up to Rs.26,000 per acre of paddy 
• Up to Rs.12,000 per acre for pulses
• Up to Rs.20,000 per acre for millets

Agriculture Minister R. Doraikannu said, “Tamil Nadu is one among the top States in disbursal of crop insurance...we will ensure that the issue would be rectified soon" he added.

A senior government official said, “Only three villages in Dindigul faced the problem and some societies in Nagapattinam have made higher claims. The companies have been told to rectify the clerical error.”