Belthangady MLA Harish Poonja has accused the Congress-led government in Karnataka of derailing the crop insurance scheme, resulting in a sharp decline in compensation for arecanut growers in Dakshina Kannada. Addressing a press conference in Mangaluru, the BJP MLA warned that his party would launch a statewide agitation if the government fails to step in to protect farmers’ interests.
According to Poonja, compensation payouts averaged ₹1.28 lakh per hectare in 2018 and remained robust at up to ₹70,000 in 2023 under the Pradhan Mantri Fasal Bima Yojana. However, he stated that payouts have since plummeted to an average of just ₹20,000 per hectare following administrative changes implemented after 2023. He blamed the decline on altered insurance agreement terms, complex regulations, and the state government’s decision to slash its premium contribution share from 20% to 10%, alongside a contentious one-year contract extension granted to Tata AIG without a fresh tender.
