Pradhan Mantri Fasal Bima Yojana designed to benefit corporates: P Sainath

Chandigarh, November 16

Reacting to the state government’s decision to join Pradhan Mantri Fasal Bima Yojana (PMFBY), eminent journalist and rural affairs expert P Sainath says experience of the past five years reveal that it has been designed to benefit the corporates.

He was in Chandigarh to speak at a seminar on “Future of Media”, which was organised by the Punjab and Chandigarh Journalists’ Union. Governor Banwarilal Purohit was the chief guest in the function organised to mark the National Press Day.

Sainath said The Tribune did a story in 2018 and proved how the scheme benefited insurance companies. He said in the first 24 months, 18 insurance companies made a profit of Rs 15,975 crore. “The 18 firms included five public sector companies, which were given the worst areas, where you don’t have any chance to make profit,” he said.

They virtually created “jagirs”, where the contract for the entire state or district would go to one company, claimed Sainath, adding that though the contracts were awarded through tenders, it’s pre-decided who would grab the deal. He said companies charge premium on the basis of an individual farmer, but when it comes to giving compensation, they treat tehsil or district as a unit.

Punjab’s argument for opting out of this scheme during the SAD-BJP tenure in 2016 was high premium and the way entire village was considered the basic unit instead of an individual farmer. The government was of the view that when farmers were already in crisis, they won’t be able to pay high premium. The farmer organisations from Punjab refused to pay any premium.