Vikram Singh, a soybean farmer in Mudla village near Dewas in Indore district, can no longer call parental house that he has lived in for decades his own.

Like several other farmers of the district, Singh has mortgaged property and other savings to moneylenders hoping good yield this year after crop failure last year will offset the loss. The step landed him in huge debt.

Around a year has passed since soya farmers suffered huge loss due to heavy rain in last year's kharif season for which over one lakh farmers of Indore district were to get insurance settlement of Rs 37 crore, an official told TOI on condition of anonymity.

Agriculture Insurance Company (AIC) India Ltd under National Agriculture Insurance Scheme (NAIS) is empanelled insurance agency in Madhya Pradesh that reimburses claims of farmers in case of crop loss. On account of delay in getting insurance claim, poor farmers in Indore are forced to mortgage their savings to moneylenders from which they have invested for kharif 2014.

"There are hundreds of poor farmers in our village who have mortgaged their land, house, ornaments and other amenities to raise funds for this year's soybean cultivation," said farmer Jeetendra Singh.

"They will be able to retrieve their property once the AIC reimburses insurance claim," he added.

Farmers assert the government is yet to reimburse insurance for '2010 hailstorm crop failure' claim too. Indian Premier Cooperative Bank (IPCB) Indore chief executive officer S K Khare confirmed that the compensation for kharif 2013 and rabi 2013-14 is to be credited in farmers' account.

"We hope the central agency will credit money in next two weeks following which we will immediately disburse it to farmers' accounts," Khare said. He said farmers have taken loan from IPCB over which they are legible to get the insurance settlement and Rs 7.64 crore have already been deducted from farmers' account as insurance premium under kharif 2013.

"Rs 7.64 crore and Rs 2.93 crore have been deducted from farmers' account for kharif 2013 and rabi 2013-14, respectively," he said. He, however, rubbished allegations of farmers accusing government of not compensating for failure of crop in 2010.

Source - http://timesofindia.indiatimes.com/