Rahul Gandhi: Modi govt now looting farmers in the name of crop insurance

Congress President Rahul Gandhi on Monday, November 5, accused the Modi government of "looting farmers" in the name of its much touted crop insurance scheme, the "Pradhanmantri Bima Fasal Yojana".

Rahul Gandhi on Twitter accused Modi of promoting crony capitalism.

"After looting the Air Force in Rafale, now the farmers are being looted in the name of crop insurance. The motive is one: fill thousands of crores of rupees in the accounts of suit-boot friends," he said in Hindi.

The Congress President has been attacking Modi and his government for corruption in the Rafale jets deal.

Journalist and farm activist P Sainath said that the Prime Minister Narendra Modi-led NDA government's crop insurance schemes for farmers is a bigger scam than even the Rafale scam on Friday evening.

"The present government's policies are anti-farmer. The Pradhanmantri Bima Fasal Yojana is a bigger racket than even the Rafale scam. Selected corporates like Reliance, Essar have been given the task of providing crop insurance," said Sainath.

Sainath was in Ahmedabad to address the Kisan Swaraj Sammelan, a three-day event going on since Friday, on issues and solutions related to the farming sector in the country.

Citing an example of Maharashtra, Sainath said: "Some 2.80 lakh farmers sowed soya in their farms. In a district, the farmers paid a premium of ₹19.2 crore, the state government and the central governments paid ₹77 crore each, amounting to a total of ₹173 crore, which was paid to Reliance insurance.

"The entire crop failed and the insurance company paid out the claims. Reliance paid ₹30 crore in one district, giving it a total net profit of ₹143 crore without investing a single rupee. Now multiply this amount to each of the districts it has been entrusted," he said.

On the other hand, there are also concerns about the farmers, especially the tenant farmers.

"For the last 20 years, everyday 2,000 farmers are leaving farming. There is a steep decline in the farmers owning land and rise in farmers becoming tenants. About 86% land owning farmers and 80% tenant farmers are in debt," added the senior journalist.

"Gradually we are farmers are losing farming to corporates. Even though there is more than 55% population that is rural in Maharashtra, the National Bank for Agriculture and Rural Development (NABARD)'s distribution of cash flow was to Mumbai, where there is no agriculture," said Sainath.

Commenting on the issue of farmers' suicide in the country, he said: "The present government does not want those figures to get published. Data from the National Crime Records Bureau from 1995 to 2015 shows that during these 20 years, 3.10 lakh farmers committed suicide. Last two years' data is being withheld."

"The government's policies are anti-farmer. The Pradhanmantri Bima Fasal Yojana is a bigger racket than even the Rafale scam," Sainath said on Friday, November 2, in Ahmedabad.

(with inputs from agency copies)