The Punjab government has estimated that about 13.46 lakh hectares (lh) of the total 34.89 lh under wheat has suffered losses due to lodging (bending or falling) of the crop following the unseasonal rain and hailstorm. The state has announced to pay a compensation of Rs 15,000 per acre.

How much will it cost the state exchequer to compensate the farmers for the damage? We explain.

What’s the crop-damage compensation bracket, and how much is the state government’s share?

According to the agriculture department officials, the government has made three slabs for damage – 20-32%, 33%-75%, and 76%-100%. In the past no compensation was paid to those farmers whose crops suffered 20% damage, but this government has decided to extend the benefit to these farmers also.

According to the government’s announcement for the crop damage between 76% and 100%, the farmers will be given a compensation of Rs 15,000 per acre, out of which Rs 9,600 would be paid by the state, while Rs 5,400 will be paid by the Centre. For the crop damage between 33% and 75%, the farmers will be given a compensation of Rs 6,750 per acre, out of which Rs 4,000 would come from the state disaster response fund (SDRF) – funded by the Government of India – while Rs 2,750 would be paid by the state.

The state exchequer will now have to pay Rs 2,000 per acre to those who suffered a loss of up to 32%. In total, the state government is required to pay Rs 14,350 per acre – including Rs 2,000, Rs 2,750 and Rs 9,600 per acre for damage up to 33%, 75% and 100%, respectively – to farmers, excluding the Centre’s share.

How much crop lodging is reported under these slabs?

According to the initial damage reported, around 40% of the total wheat crop is affected by lodging. According to field reports compiled by the state’s agriculture department, lodging has so far been reported to the extent of 20%-32% on 7,13,685 hectares (17.63 lakh acres), 33%-75% on 5,85,634 hectares (14.47 lakh acres) and 76%-100% on 46,809 hectares (1.12 lakh acres). That adds up to 13.45 lh (33.22 lakh acres) or 38.5% of the total wheat area in the current Rabi season.

How much compensation is the state required to pay for all the recorded damage?

In the 76%-100% damage bracket, the total compensation at the rate of Rs 15,000 per acre would come to around Rs 173.42 crore, out of which the state is required to pay around Rs 110.99 crore as nearly 1.16 lakh acres is reported to be damaged under it. The remaining amount will come from the Centre.

In the 33%-75% bracket, the total compensation comes out to nearly Rs 977 crore, out of which the state is required to pay Rs 398 crore, while in the 20%-32% bracket, the state government will have to pay Rs 352 crore.

So, in total, the state is required to pay around Rs 860.99 crore compensation to the farmers, excluding the Centre’s share.

Now, it is to be seen how much of this amount is actually paid to the farmers, the officers in the agriculture department said, adding that it is a big amount for any state government, but the Centre’s share is also coming to around Rs 641 crore.

Source - https://indianexpress.com