Amid floods, Punjab farmers seek effective, government-funded crop insurance

In the wake of recent devastating floods across Punjab, farmers have renewed their demand for a comprehensive crop insurance policy. The agricultural community argues that their livelihoods remain under constant threat due to unpredictable weather patterns, making agriculture increasingly vulnerable to climate change. With this year’s floods causing widespread damage, farmers say current compensation measures are not enough and are seeking stronger government intervention.

Farmers in Punjab have experienced consecutive years of losses due to extreme weather. In March 2022, an unexpected rise in temperature just before the wheat harvest led to significant crop damage. Even minor climate fluctuations can devastate entire harvests, highlighting the precariousness of their situation and the urgent need for a reliable support mechanism such as crop insurance.

This year’s torrential rains in July and August resulted in floods across most districts, submerging fields and destroying paddy crops. The Punjab government announced a compensation of 20,000 per acre, but many affected farmers report actual losses of up to 70,000 per acre after accounting for crop destruction, delayed planting, and waterlogging. The shortfall has prompted concerns about the effectiveness of the existing relief framework.

Harinder Singh Lakhowal, a farmer leader from Kohara, said: "Punjab has suffered huge losses due to floods. Prime Minister Modi came and announced a relief package, but we need more than token compensation. Sometimes it is fire, sometimes rain, sometimes floods—our crops are constantly at risk. There must be a proper crop insurance scheme. The Centre’s existing scheme should be corrected to cover every acre, with the government paying the premium so that farmers are truly protected."

Lakhbir Singh from Baddowal, Ludhiana, echoed: "The 20,000 per acre compensation announced by the Punjab government is too little. Given the repeated damages, there must be crop insurance, with the government paying the premium. Only then can farmers survive these natural calamities." He added, "This year, not only crops but also houses and livestock were destroyed. The government should at least give 50,000 per acre for crops and 1 lakh per animal lost."

SGPC President Harjinder Singh Dhami emphasised the need for a proper insurance scheme. He said floods have caused massive damage to standing crops, yet the government has failed to provide adequate protection. According to him, farmers suffer repeatedly due to natural disasters like floods, heavy rains, and fires, but no long-term mechanism exists to secure their livelihoods. Dhami stressed that crop insurance must be made mandatory and effective so that farmers are not left helpless after each calamity.

Dhami criticised the authorities for not forming a special committee to address the crisis. He said the present system does not cover farmers adequately, leaving them burdened by losses year after year. Dhami demanded a comprehensive policy where the premium is paid by the state so farmers are not financially strained, and noted that disaster compensation so far is far below actual losses. He insisted that farmers need real assurance of protection, not token relief.

Political figures have also lent support to the farmers’ calls. Malvinder Kang, AAP MP from Anandpur Sahib, told India Today: "Yes, there must be crop insurance. There is already a Centre government scheme, but it needs to be corrected. If the premium is charged per acre, then compensation should also be per acre. Right now, benefits are only given if 70–80% of villages in a block are impacted. That is unfair. The insurance must protect farmers during calamities, not just benefit insurance companies. This must be fixed."

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Inputs from Vivek Dhall from Ludhiana