Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Compensation to Farmers of Drought Area...
Date: 2025-08-12 Category: Not Applicable State: Union Government Country: India

Parliament Question: Compensation to Farmers of Drought Areas

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

Executive Summary: This document addresses Lok Sabha Starred Question No. 334 regarding compensation to farmers in drought-affected areas, to be answered on August 12, 2025. It details financial assistance provided by the Central Government through State Disaster Response Funds (SDRF) and National Disaster Response Funds (NDRF), and the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS). The statement also addresses pending compensation cases and measures taken to improve claim settlement. Key Points / Main Content: Disaster Management and Financial Assistance: * The primary responsibility for disaster management rests with State Governments. * The Central Government provides logistics and financial support to States. * Financial relief is provided to affected people from the State Disaster Response Fund (SDRF). * Additional financial assistance is extended from the National Disaster Response Fund (NDRF) in the event of disasters of a 'severe nature', based on an assessment by an Inter-Ministerial Central Team (IMCT). * Financial assistance under SDRF and NDRF is provided by way of relief and not compensation. * Details of Statewise allocation of SDRF during 2021-2026 are in Annexure I. * Details of financial assistance provided under NDRF for drought for different States during the last five years are in Annexure II. Crop Insurance Schemes (PMFBY and RWBCIS): * Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) provide financial support to farmers suffering crop loss/damage from natural calamities and adverse weather. * PMFBY offers comprehensive risk insurance from pre-sowing to post-harvest. * RWBCIS claims are based on adverse weather parameters impacting crop production. * Claims are worked out and paid to insured farmers as per scheme provisions, instead of compensation. * State-wise details of farmer applications enrolled and benefited from 2020-21 to 2024-25 (upto Kharif 2024) are in Annexure III. * State-wise details of claims reported, paid, and pending from 2020-21 to 2024-25 (upto Kharif 2024) as of 30.06.2025 are in Annexure IV. * The UT of Dadra and Nagar Haveli is not implementing the PMFBY scheme. Pending Compensation Cases and Actions Taken: * No drought memorandum seeking financial assistance from NDRF from Maharashtra, Madhya Pradesh, and UT of Dadra and Nagar Haveli is pending. * Most claims under PMFBY are settled within stipulated timelines. * Delays in claim payments can occur due to delays in State Government subsidy share, incorrect insurance proposals by banks, or discrepancies in yield data. * Pending claims are settled after resolution as per scheme provisions. * The government has developed the National Crop Insurance Portal (NCIP) for data management, subsidy payment, coordination, and service delivery. * Digiclaim Module has been operationalized for claim payments from Kharif 2022, integrating NCIP with PFMS and insurance company accounting systems. * Central Government premium subsidy share is delinked from State Governments' share. * Opening of ESCROW Accounts by State Governments for advance deposit of premium share is mandatory from Kharif 2025. * Technology is leveraged through CCEAgri App for yield data, integration of land records with NCIP. * A 12% penalty for delay in claim payment by insurance companies is auto-calculated on NCIP. Impact Analysis: State Governments: * Impact: Primarily responsible for disaster management and providing relief. They receive financial support from the Central Government. Required to manage SDRF effectively and may receive additional NDRF assistance for severe disasters. Responsible for timely payment of premium subsidy share. * Action Required: Ensure efficient disaster management, timely disbursement of SDRF funds, open ESCROW accounts for premium share, resolve issues causing claim payment delays, and accurately submit drought memorandums if seeking NDRF assistance. Farmers: * Impact: Benefit from financial support through PMFBY and RWBCIS in case of crop loss/damage. Await timely settlement of insurance claims. * Action Required: Enroll in PMFBY/RWBCIS, ensure accurate insurance proposals through banks, and report any discrepancies in claim settlement. Insurance Companies: * Impact: Responsible for settling claims under PMFBY and RWBCIS. Subject to penalties for delays in claim payments. * Action Required: Settle claims within stipulated timelines, integrate with NCIP and PFMS for claim disbursal, and address issues causing delays in claim payments. Central Government: * Impact: Provides financial and logistical support to State Governments for disaster management. Monitors the implementation of PMFBY and RWBCIS. * Action Required: Ensure timely release of funds to States, monitor claim disbursal process, strengthen implementation of PMFBY/RWBCIS, and address complaints regarding claim payments.

Key Entities Referenced

National Disaster Management Plan: A plan referred to in the policy document as setting the primary responsibility of disaster management with the State Governments. State Disaster Response Fund: A fund already placed at the disposal of State Governments to provide financial relief to affected people in the event of notified natural disasters. National Disaster Response Fund: A fund that provides additional financial assistance to State Governments in the event of a disaster of a 'severe nature'. Pradhan Mantri Fasal Bima Yojana: A yield based scheme introduced to provide financial support to farmers suffering crop loss or damage arising out of natural calamities and adverse weather incidence. Restructured Weather Based Crop Insurance Scheme: A weather index based scheme introduced to provide financial support to farmers suffering crop loss or damage arising out of natural calamities and adverse weather incidence. National Crop Insurance Portal: A single source of data ensuring subsidy payment, coordination, transparency, dissemination of information and delivery of services including direct online enrolment of farmers. Digiclaim Module: A dedicated module operationalized for payment of claims involving integration of National Crop Insurance Portal with Public Finance Management System and accounting system of Insurance Companies. Maharashtra: One of the states (along with Madhya Pradesh, and UT of Dadra and Nagar Haveli) for which details of compensation and pending cases are mentioned.
Official Source Record View Original Source →
See Full Document Text
O.I.H. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA STARRED QUESTION. NO. 334 TO BE ANSWERED ON THE 12TH AUGUST, 2025 COMPENSATION TO FARMERS OF DROUGHT AREAS *334. SHRI BHUMARE SANDIPANRAO ASARAM: DR. SHIVAJI BANDAPPA KALGE: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state: (a) the details of crop compensation released to the farmers along with the number of farmers benefited in drought affected States of the country under various programmes during each of the last five years and the current year, State/area and crop-wise; (b) the details of cases of compensation lying pending with the Government particularly in respect of Maharashtra, Madhya Pradesh and UT of Dadra and Nagar Haveli; (c) whether any action has been taken to settle these pending cases; and (d) if so, the details thereof and if not, the reasons therefor? ANSWER THE MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHOUHAN) (a) to (d): A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 334 DUE FOR REPLY ON 12TH AUGUST, 2025. (a): As per the National Disaster Management Plan (NDMP), the primary responsibility of disaster management including damage assessment and providing relief measures on ground level, rests with the State Governments concerned. The Central Government provides requisite logistics and financial support to the efforts of the State Governments. The State Governments provide financial relief to the affected people in the event of 12 notified natural disasters, from the State Disaster Response Fund (SDRF), already placed at its disposal, in accordance with approved items and norms of Government of India (GOI). However, in the event of disaster of a 'severe nature', additional financial assistance is extended from the National Disaster Response Fund (NDRF), as per laid down procedure, which includes an assessment based on the visit of an Inter-Ministerial Central Team (IMCT). The financial assistance provided under SDRF and NDRF is by way of relief and not for compensation. Details of State-wise allocation of State Disaster Response Fund (SDRF) during 2021-2026 are at Annexure I. The details of financial assistance provided under NDRF for drought for different States, during the last five years, are at Annexure-II. The Government has introduced yield based Pradhan Mantri Fasal Bima Yojana (PMFBY) and weather index based Restructured Weather Based Crop Insurance Scheme (RWBCIS) from Kharif 2016 to provide financial support to farmers suffering crop loss/damage arising out of natural calamities and adverse weather incidence. PMFBY provides for comprehensive risk insurance against crop damage from pre- sowing to post-harvest for crops and area notified by the concerned State Government. The scheme safeguards against wide spread yield loss due to non-preventable natural risks/ & extreme climate calamities, including drought and heat waves. Further, under RWBCIS, claims are worked out on the basis of adverse weather parameters, such as deficit and excess rainfall, high or low temperature, humidity etc. which are deemed to impact adversely the crop production. Thus, claims are dependent on weather/climate data received from the notified Weather Stations/Rain Gauge Stations. Under PMFBY, compensation is not given to farmers. Claims are worked out and paid to the insured farmers as per the provisions of the scheme. State-wise details of farmer applications enrolled and farmers benefitted during 2020-21 to 2024-25 (upto Kharif 2024) are at Annexure-III. State-wise details of claims reported, claims paid and claims pending from 2020-21 to 2024-25 (upto Kharif 2024) as on 30.06.2025 are given in Annexure-IV. It is also informed that UT of Dadra & Nagar Haveli is not implementing the scheme. (b) to (d): No drought memorandum has been received from the State Governments of Maharashtra, Madhya Pradesh and UT of Dadra & Nagar Haveli seeking financial assistance from NDRF, is pending with the Ministry of Agriculture and Farmers Welfare. Majority of the claims under PMFBY are settled within the stipulated timelines under the Operational Guidelines of the scheme by the insurance companies. However, duringthe implementation of PMFBY, some complaints were received in the past about payment of claims which are primarily on account of (a) delay in providing State Government share of subsidy (b) non-payment/delayed payment or under payment of claims on account of incorrect/delayed submission of insurance proposals by banks (c) discrepancy in yield data & consequent disputes between State Government and insurance companies etc. The pending claims on account of these issues are settled after their resolution as per provisions of the scheme. Government has taken various steps to strengthen implementation of this scheme, bring transparency and ensure timely settlement of claims:  Government has undertaken development of National Crop Insurance Portal (NCIP) as a single source of data ensuring subsidy payment, co-ordination, transparency, dissemination of information and delivery of services including direct online enrolment of farmers, uploading/obtaining individual insured famer’s details for better monitoring and to ensure transfer of claim amount electronically to the individual farmer’s Bank Account.  In order to rigorously monitor claim disbursal process, a dedicated module namely ‘Digiclaim Module’ has been operationalized for payment of claims from Kharif 2022 onwards. It involves integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies.  Delinking of Central Government share of premium subsidy from that of State Governments has been implemented so that farmers can get proportionate claims relating to the Central Government share.  Opening of ESCROW Account by the State Government concerned for deposit of their premium share in advance as per provisions of the scheme has been made mandatory w.e.f. Kharif 2025 season.  Also, towards leveraging technology in implementation of the scheme, various steps like capturing of yield data/Crop Cutting Experiments (CCEs) data through CCE-Agri App and uploading it on the NCIP, allowing insurance companies to witness the conduct of CCEs, integration of State land records with NCIP etc. have already been taken to improve timely settlement of the claims to farmers.  Provision of 12% penalty on delay in payment of claims by insurance company is auto calculated on National Crop Insurance Portal (NCIP).Annexure-I State-wise allocation of State Disaster Response Fund (SDRF) during 2021-2026 (Rs. in crore) SI. State 2021-22 2022-23 2023-24 2024-25 2025-26 Total No. 2021-26 1 Andhra Pradesh 1192.80 1252.80 1315.20 1380.80 1449.60 6591.20 2 Arunachal 222.40 233.60 245.60 256.80 270.40 1228.80 Pradesh 3 Assam 686.40 720.80 756.80 795.20 834.40 3793.60 4 Bihar 1510.40 1586.40 1664.80 1748.00 1836.00 8345.60 5 Chhattisgarh 460.80 484.00 508.00 533.60 560.00 2546.40 6 Goa 12.00 12.80 12.80 13.60 15.20 66.40 7 Gujarat 1412.00 1482.40 1556.80 1635.20 1716.00 7802.40 8 Haryana 524.00 550.40 577.60 606.40 636.80 2895.20 9 Himachal 363.20 380.80 400.80 420.00 441.60 2006.40 Pradesh 10 Jharkhand 605.60 635.20 667.20 701.60 736.00 3345.60 11 Karnataka 843.20 885.60 929.60 976.00 1024.80 4659.20 12 Kerala 335.20 352.00 369.60 388.00 408.00 1852.80 13 Madhya 1941.60 2038.40 2140.80 2248.00 2360.00 10728.80 Pradesh 14 Maharashtra 3436.80 3608.80 3788.80 3978.40 4176.80 18989.60 15 Manipur 37.60 39.20 41.60 44.00 45.00 208.00 16 Meghalaya 58.40 60.80 64.80 67.20 71.20 322.40 17 Mizoram 41.60 43.20 46.40 48.00 50.40 229.60 18 Nagaland 36.80 38.40 40.80 42.40 44.80 203.20 19 Odisha 1711.20 1796.80 1886.40 1980.80 2080.00 9455.20 20 Punjab 528.00 554.40 582.40 611.20 642.40 2918.40 21 Rajasthan 1580.00 1659.20 1742.40 1828.80 1920.00 8730.40 22 Sikkim 44.80 47.20 49.60 52.00 54.40 248.00 23 Tamil Nadu 1088.00 1142.40 1200.00 1260.00 1322.40 6012.80 24 Telangana 479.20 503.20 528.00 555.20 582.40 2648.00 25 Tripura 60.80 63.20 67.20 70.40 74.40 336.00 26 Uttar Pradesh 2062.40 2165.60 2273.60 2388.00 2507.20 11396.80 27 Uttarakhand 832.80 874.40 918.40 964.00 1012.00 4601.60 28 West Bengal 1078.40 1132.80 1189.60 1248.00 1311.20 5960.00 Total 23186.40 24344.80 25565.60 26841.60 28184.00 128122.40Annexure-II Details of financial assistance provided under NDRF for drought during last five years (Rs. in crore) Sl. Central assistance approved by No. Name of State Calamity GOI (under N.D.R.F) During - 2020-21 1. Rajasthan Drought (Kharif) 113.69 During - 2021-22 1. Rajasthan Drought (Kharif) 1003.95 2. Nagaland Drought 39.284 (Kharif/Rabi) During - 2022-23 1. Jharkhand Drought (Kharif) Nil recommended from NDRF as sufficient funds were available under SDRF During – 2023-24 1. Karnataka Drought (Kharif) 3498.82 2. Maharashtra Drought (Kharif) Nil recommended from NDRF as sufficient funds were available under SDRF 3. Andhra Pradesh Drought (Kharif) Nil recommended from NDRF as sufficient funds were available under SDRF Drought (Rabi) Nil recommended from NDRF as sufficient funds were available under SDRF During - 2024-25 1. Andhra Pradesh Drought (Kharif) Nil recommended from NDRF as sufficient funds were available under SDRF Drought (Rabi) Nil recommended from NDRF as sufficient funds were available under SDRFAnnexure - III PMFBY & RWBCIS: State Wise Farmer applications enrolled and Farmer applications Benefitted from 2020-21 to 2024-25 (upto Kh 24) States Farmers Applications Insured (In No.) Farmers applications Benefitted (In No.) 2020-21 2021-22 2022-23 2023-24 2024-25 2020-21 2021-22 2022-23 2023-24 2024-25 A & N Islands 339 503 171 187 150 - - 7 86 39 Andhra Pradesh - 1,23,87,364 1,31,29,912 85,43,555 - 6,29,229 - - Assam 16,54,293 9,78,243 4,89,981 7,93,506 7,61,951 3,06,903 2,93,265 26,240 99,561 20,817 Chhattisgarh 51,58,362 58,38,755 77,30,456 81,25,985 67,56,016 18,02,988 27,29,951 15,31,966 15,00,347 2,50,598 Goa 84 64 403 234 216 - - 5 2 64 Haryana 16,50,558 14,52,842 14,51,535 1,02,67,729 94,27,621 4,63,902 6,45,202 7,52,993 25,15,329 17,24,053 Himachal Pradesh 2,40,700 2,33,721 2,67,618 2,78,055 1,09,605 1,65,498 1,16,583 1,39,516 1,07,964 31,257 Jammu & Kashmir 90,834 91,582 2,45,757 1,47,346 34,140 17,903 73,579 72,354 Jharkhand 25,48,512 31,825 Karnataka 18,06,952 19,34,442 27,18,915 30,77,232 30,48,823 8,01,362 11,80,532 18,40,873 23,60,145 10,25,637 Kerala 76,317 98,509 1,46,546 1,74,102 92,743 60,353 89,732 1,30,053 28,695 - Madhya Pradesh 84,39,890 92,64,214 1,77,32,045 1,77,95,826 97,17,150 50,44,071 42,83,249 36,88,740 39,43,417 32,64,868 Maharashtra 1,23,97,895 99,02,581 1,07,33,625 2,41,73,494 1,64,14,758 16,89,499 66,64,795 76,44,275 1,32,27,119 73,92,889 Manipur - 2,807 4,066 5,073 4,619 - 1,989 3,395 4,170 - Meghalaya 130 - 337 38,569 47,749 121 - 68 14,398 18,952 Odisha 97,52,448 81,72,952 80,20,747 1,41,60,653 1,37,81,469 17,13,945 29,70,441 17,83,312 11,49,287 7,30,087 Puducherry 11,268 34,293 38,274 42,344 8,781 329 12,168 7,263 5,846 5,857 Rajasthan 1,07,59,587 3,44,53,784 3,90,71,541 3,90,16,977 2,15,31,458 25,06,058 1,18,89,993 1,16,18,304 83,11,462 27,20,571 Sikkim 85 2,346 5,025 3,104 489 6 - - 23 - Tamil Nadu 58,87,626 59,11,015 61,37,961 54,56,594 3,15,826 39,99,367 22,72,586 19,37,875 17,00,553 1,48,721 Telangana - - Tripura 2,57,220 3,35,504 3,56,201 3,65,378 8,231 37,120 43,836 20,515 10,905 3,554 Uttar Pradesh 41,90,556 40,68,701 42,83,991 60,68,754 50,72,290 6,36,141 10,36,784 12,51,998 11,84,713 14,41,310 Uttarakhand 1,70,812 1,82,762 2,82,068 2,27,291 1,28,244 1,04,762 1,16,176 1,99,847 1,71,124 92,045 West Bengal - - Grand Total 6,24,55,122 8,29,58,872 11,19,50,452 14,34,46,756 9,84,67,602 1,93,32,425 3,43,81,422 3,32,24,377 3,64,08,725 1,89,75,498Annexure IV PMFBY & RWBCIS: State Wise Reported, paid and pending claims from 2020-21 to 2024-25 (upto Kh 24) (in Rs. Crore) State/UTs 2020-21 2021-22 2022-23 Reported Paid Claims Reported Paid Claims Reported Paid Claims Claims Claims Pending Claims Claims Pending Claims Claims Pending A & N Islands - - - - - - 0.00 - 0.00 Andhra Pradesh - - - - 678.81 546.73 132.08 Assam 188.07 188.04 0.03 275.52 256.40 19.12 20.96 19.98 0.98 Chhattisgarh 888.09 888.02 0.08 1,432.32 1,432.20 0.12 534.38 534.27 0.11 Goa - - - - - - 0.00 0.00 - Haryana 1,169.58 1,162.72 6.86 1,652.79 1,649.59 3.20 2,542.51 2,518.66 23.85 Himachal Pradesh 84.87 84.63 0.24 77.24 77.11 0.13 69.21 69.06 0.15 Jammu & Kashmir 52.72 52.72 - 6.46 6.33 0.13 Jharkhand Karnataka 1,072.19 1,070.48 1.72 1,545.11 1,543.37 1.73 2,388.74 2,386.06 2.67 Kerala 127.53 127.17 0.36 102.91 102.72 0.18 183.15 183.01 0.14 Madhya Pradesh 7,764.32 7,750.78 13.54 2,810.85 2,803.80 7.05 1,057.86 1,049.47 8.40 Maharashtra 1,347.52 1,307.85 39.67 4,781.56 4,778.50 3.06 5,446.46 5,390.90 55.56 Manipur - - - 1.45 1.45 - 1.64 1.62 0.02 Meghalaya 0.07 0.07 - - - - 0.01 0.01 0.00 Odisha 572.19 572.18 0.02 1,043.51 1,043.48 0.03 587.11 581.04 6.07 Puducherry 0.54 0.54 - 2.95 2.95 - 3.80 3.55 0.25 Rajasthan 4,065.06 4,054.46 10.60 5,011.46 4,996.79 14.68 4,386.54 4,360.35 26.20 Sikkim 0.02 0.02 - - - - - - - Tamil Nadu 2,653.48 2,653.39 0.09 817.13 817.13 - 918.93 917.01 1.92 Telangana - - - Tripura 2.57 2.57 - 2.64 2.64 - 2.09 2.03 0.06 Uttar Pradesh 502.82 502.57 0.25 930.75 930.75 - 1,007.66 977.14 30.52 Uttarakhand 134.96 134.96 - 122.30 122.30 - 208.25 207.94 0.31 Total 20,573.90 20,500.45 73.45 20,663.21 20,613.90 49.31 20,044.57 19,755.17 289.41State/UTs 2023-24 2024-25 (upto Kharif 24) Consolidated Reported Paid Claims Claims Reported Paid Claims Reported Paid Claims Claims Claims Pending Claims Claims Pending Claims Pending A & N Islands 0.02 0.02 - 0.02 - 0.02 0.05 0.02 0.03 Andhra Pradesh 2,235.12 - 2,235.12 224.87 - 224.87 3,138.80 - 2,592.07 Assam 62.06 58.21 3.85 10.51 8.89 1.62 557.12 531.51 25.61 Chhattisgarh 588.52 588.25 0.26 114.91 111.45 3.46 3,558.22 3,554.19 4.04 Goa 0.00 0.00 - 0.01 0.01 0.00 0.01 0.01 0.00 Haryana 273.31 265.23 8.08 282.90 262.63 20.27 5,921.08 5,858.83 62.25 Himachal Pradesh 131.99 131.70 0.29 6.41 0.00 6.40 369.71 362.51 7.20 Jammu & Kashmir 36.36 34.62 1.74 23.67 23.25 0.43 119.21 116.92 2.29 Jharkhand 20.64 - 20.64 20.64 - 20.64 Karnataka 3,362.14 3,349.62 12.52 1,168.74 1,163.81 4.93 9,536.91 9,513.35 23.56 Kerala 47.68 47.68 - - - - 461.26 460.58 0.69 Madhya Pradesh 954.04 776.16 177.87 1,101.13 - 1,101.13 13,688.21 12,380.21 1,308.00 Maharashtra 9,599.23 9,522.62 76.61 3,737.25 3,588.69 148.56 24,912.02 24,588.57 323.46 Manipur 2.01 2.00 0.01 - - - 5.10 5.08 0.03 Meghalaya 14.65 14.04 0.60 9.57 9.49 0.08 24.30 23.61 0.68 Odisha 235.49 232.56 2.93 117.98 112.05 5.93 2,556.29 2,541.31 14.98 Puducherry 1.63 0.92 0.71 2.04 0.52 1.51 10.96 8.49 2.48 Rajasthan 3,257.06 3,062.62 194.45 701.80 0.00 701.80 17,421.93 16,474.21 947.72 Sikkim 0.01 - 0.01 - - - 0.03 0.02 0.01 Tamil Nadu 763.83 759.68 4.14 71.78 60.37 11.41 5,225.14 5,207.59 17.56 Telangana - - - Tripura 2.10 1.88 0.23 0.46 0.46 0.01 9.87 9.57 0.29 Uttar Pradesh 480.20 467.70 12.50 287.43 279.42 8.00 3,208.86 3,157.58 51.27 Uttarakhand 347.15 347.07 0.07 153.47 153.47 0.01 966.13 965.74 0.39 Total 22,394.58 19,662.59 2,731.99 8,035.60 5,774.51 2,261.09 91711.854 86306.61247 5405.241 *****

Continue your research