High Cost Farm Insurance Burdening India's Most Vulnerable Population

In the Mandsaur district of Madhya Pradesh, farmer Dileep Patidar grapples with the harsh realities of climate change, losing nearly half of his urad crop due to low rainfall and not receiving insurance payout. This unfortunate incident underscores the challenges faced by farmers in climate-vulnerable districts, a problem the Indian government aims to address through the implementation of digital crop surveys nationwide.

Launched in 2023, the digital crop surveys are set to revolutionize India's agriculture sector. The government's plan, announced in 2025, is to roll out these surveys in all districts by March 2026. The initiative aims to enhance the precision of crop yield estimates using technology like mobile apps, global positioning, artificial intelligence, and machine learning.

The digital crop surveys are a response to the issues faced by farmers like Dileep Patidar. They are intended to address the lack of transparency, a main challenge with the current insurance scheme from farmers' perspective. The government hopes that these surveys will enhance the efficiency and transparency of crop insurance, making settling claims easier.

The southern state of Andhra Pradesh introduced a digital crop survey in 2018, utilizing satellite and other technology to track crop yields. Thanks to greater transparency, Andhra Pradesh has managed to reduce the amount farmers pay for insurance to about 4% of the total premium. This success story serves as a beacon of hope for other states.

The Indian federal government runs the world's largest agriculture crop insurance scheme, but farmers in climate-vulnerable districts like Mandsaur face higher premiums, lower levels of insurance cover, and lower payouts compared to farmers in lower-risk districts. This disparity is a significant concern, and the digital crop surveys are expected to help bridge this gap.

Amit Khurana from the Centre for Science and Environment (CSE) believes that state governments should look to technology to make the insurance work better for farmers. However, the main challenge with the insurance scheme from farmers' perspective remains the lack of transparency, according to public policy expert Donthi Narasimha Reddy.

The Indian farm insurance scheme, launched in 2016, aims to protect farmers' incomes by insuring 50% of all agricultural land by 2020, but only 30% was insured by 2021. The digital crop surveys are a step towards achieving this goal, providing high-quality yield data and robust weather data to enhance trust in the system.

It's important to note that climate change is impacting India's crops, with more than 4 million hectares affected by extreme weather events in 2024, nearly double the previous year. The digital crop surveys are a crucial tool in the fight against these challenges, offering a promising solution for farmers like Dileep Patidar.

In conclusion, the digital crop surveys represent a significant stride in India's agricultural sector. By enhancing transparency, precision, and trust, they offer a beacon of hope for farmers in climate-vulnerable districts like Mandsaur. The rollout of these surveys across the country is a testament to the government's commitment to supporting farmers and ensuring the sustainability of India's agriculture sector.