Farmers in Uttarakhand Face Insurance Woes After Apple Crop Losses

Sanjeev from Dehradun

August is typically a crucial month for apple farmers in Uttarkashi district, Uttarakhand, as they bring their harvest to market. However, this year, instead of reaping the fruits of their labor, these farmers are embroiled in a struggle with both the state’s horticulture department and their crop insurance company. Despite having insured their apple crops in December and January, many farmers are now facing the cancellation of their insurance policies on technical grounds, eight months later. 

This comes after a severe hailstorm in April caused extensive damage to their crops, resulting in losses amounting to lakhs of rupees. Farmers allege that the insurance company is canceling policies to avoid paying out claims, while the company attributes the issue to the complex land settlement process in Uttarakhand.

The blocks of Mori, Purola, and Naugaon in Uttarkashi, which border Himachal Pradesh, are well-known apple-producing regions in Uttarakhand. With a climate similar to Himachal, farmers here cultivate apples and insure their crops under a scheme supported by both the central and state governments. This year, the Uttarakhand government contracted SBI General Insurance Company to provide crop insurance in ten districts, including Uttarkashi.

Hailstorm did a major loss to the apple farmers this year

Why Was the Insurance Rejected?

Sanjay Thapliyal, a progressive farmer from Tian village in the Naugaon block, shared his ordeal with Rural Voice. He explained that farmers in the area had insured their apple crops in December, paying the full premium to the insurance company. However, by August, the company had either canceled many of the farmers’ policies or returned the remaining premium, deducting up to 90 percent. Thapliyal noted that the hailstorm in March-April had already inflicted heavy losses on their crops. The farmers were expecting compensation through their crop insurance, but the company rejected their claims on technical grounds after seven to eight months, leaving them with losses of three to four lakh rupees.

In response, orchard owners have met with Uttarakhand’s Agriculture Minister, Ganesh Joshi, in Dehradun, seeking his intervention. Following the meeting, Minister Joshi convened a session with all stakeholders, siding with the farmers and directing the insurance company to pay compensation. He has also written to the Union Agriculture Minister regarding the issue.

The Problem of Scattered Land Holdings

Vipul Dimri, the State Head of SBI General Insurance Company, acknowledged the cancellation or reduction of insurance coverage but attributed it to incomplete land documentation on the farmers’ part. He explained that the farmers' lands in the hills are often scattered across different locations. During the application process at the Common Service Center (CSC) under the crop insurance scheme, not all land plot numbers (Khasra numbers) were recorded. Consequently, during verification, many farmers’ landholdings were found to be smaller than claimed. For example, if a farmer owns fifty naali (a local unit of land), but only five naali were documented during the insurance application, the farmer was only insured for 30 trees at a rate of six trees per naali. The remaining premium was returned.

This issue is compounded by the lack of land consolidation in Uttarakhand and the joint ownership of farmers' lands. However, the question remains: why did the insurance company not identify this problem when collecting the premiums? Why is insurance being denied to farmers now, when they need it most?

Agriculture minister of Uttarakhand Ganesh Joshi meeting with officials over the woes of apple farmers

Internet Connectivity Issues

Farmer Sanjay Thapliyal also pointed out that only 500 MB files can be uploaded through the CSC, making it difficult to upload all the necessary documents for scattered landholdings. He questioned why the insurance company did not raise these issues over the past three to four years and why they were only brought up when it was time to pay compensation. Thapliyal suggested that the insurance company could base compensation on the garden cards issued by the government, and questioned why the claims were being rejected.

Immediate Action Ordered

Uttarakhand Agriculture Minister Ganesh Joshi has instructed departmental officials and the insurance company to immediately release the insurance amount to the farmers. He held a meeting with the Director General of Agriculture, the Horticulture Director, and the State Head of SBI Insurance Company to address the issue. The minister emphasized that if farmers have insured their crops to protect against excessive rain, drought, or hailstorms, they must receive compensation. He has also written to the Union Agriculture Minister, requesting the Central Government to reopen the government portal so that the apple crops can be insured again.