Harish Poonja, MLA, speaking at a press conference in Mangaluru on Saturday.
| Photo Credit: H.S. MANJUNATH
Belthangady MLA Harish Poonja alleged here on Saturday that the crop insurance compensation amount being received by arecanut growers in Dakshina Kannada is on the decline since the Congress government took over in the State.
Addressing presspersons, the MLA said the Congress-led State government had derailed the crop insurance scheme thus doing injustice to arecanut growers in the district.
He warned that the BJP would launch an agitation against the government if it did not come to the rescue of arecanut growers.
Mr. Poonja said arecanut growers in the district had been receiving substantial compensation from the time Prime Minister Narendra Modi launched Fasal Bima Yojana in 2016 until 2023. Compensation averaged ₹1.28 lakh per hectare in 2018, ranged between ₹60,000 and ₹90,000 in 2020-21, and reached up to ₹70,000 by 2023. However, under the current Congress government, this amount has plummeted to an average of ₹20,000 a hectare.
He stated that after the Congress government assumed power in 2023, the terms of the agreement with insurance companies were altered in a manner detrimental to farmers. Complex regulations were imposed effectively denying farmers their insurance payouts.
Reduction in State’s premium share
He said between 2016 and 2023, the insurance premium contributions were 5% from farmers, 10% from the Union government, and 20% from the State government, thus totalling 35%. However, after the Congress government took charge it slashed its premium share from 20% to 10%, thus bringing the total share from 35% to 25%.
He said although the three-year tender period awarded to Tata AIG General Insurance Company in Dakshina Kannada had expired, the contract was extended for another year without inviting a new tender, citing lack of time.
Published – October 03, 2026 08:35 pm IST
