 "UP worried at tardy compensation payout to farmers")
Acknowledging the tardy pace of distribution of compensation to farmers affected from rain and hailstorms, Uttar Pradesh government has now convened a meeting with the representatives of banks and insurance companies on May 11.
The government admitted that the farmers were not getting benefits as promised under the Crop Insurance Scheme, although premiums had been paid adequately and on time.
The state has also invited secretaries of the central government at the meeting for resolving the delay in payment of insurance amount to farmers under the Crop Insurance Scheme.
While the state and central governments have been trading charges over the plight of farmers, the banks and the insurance companies have been blamed for either delaying payment of compensation or paying low or negligent amounts.
Massive crop loss had been reported in UP this year with 73 of the total 75 districts marked as affected. An area of 5.86 million hectares (MH) has been reported with over 33 percent crop loss in UP making it eligible for receiving relief from the government. The worst affected crop is wheat cultivated on an area of over 4 MH, besides gram, mustard, peas, potato etc.
Meanwhile, the state has so far disbursed over Rs 1,165 crore to 2.5 million farmers. This is much less than the amount of Rs 1,955 crore released by the government for the purpose.
UP chief minister Akhilesh Yadav had interacted with the farmers yesterday via video conferencing, wherein he claimed his government was providing relief out of its own resources, without much help from the Centre.
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State chief secretary Alok Ranjan asserted the insurance companies would have to ensure payment to the affected farmers and their exploitation would not be tolerated.
The state had already demanded a central package of over Rs 7,500 crore for relief distribution.
Last month, Yadav had expressed displeasure over slow pace of ground survey work and low percentage of relief distribution amongst farmers. The districts magistrates had been warned to ensure cent percent distribution of relief.