Mangaluru : Belthangady MLA Harish Poonja on Saturday accused state govt of reducing crop insurance compensation for arecanut and other farmers in Dakshina Kannada, warning of large-scale protests unless adequate and timely relief was provided.
He claimed average compensation had fallen to about Rs 20,000 during present govt’s tenure, compared with nearly Rs 70,000 received by farmers until 2023. Poonja also alleged that state govt reduced its share of the insurance premium from 20% to 10% and failed to pay the insurance company within the stipulated period, resulting in lower compensation.
Changes to the ‘term sheet’ rules, made in consultation with insurance companies, had adversely affected farmers, he said. Revised rules could result in compensation being treated as “zero” when rainfall exceeded 250 mm, according to Poonja. Poonja alleged that financial support under the crop insurance scheme had declined sharply since Congress govt came to power. He questioned the one-year extension of Tata AIG’s contract after its three-year tender expired, alleging that no fresh tender was invited, and asked whether state govt had received a kickback. Poonja demanded that district minister UT Khader respond to the allegations and explain govt’s position on crop insurance in Dakshina Kannada.