Odisha's Farmers Face 33% Crop Loss: CM Steps In with ₹291.59 Crore Relief Package

The government has pledged to identify farmers impacted by recent unseasonal rains by December 30, regardless of their crop insurance status, following its latest announcement aimed at providing support to the agricultural sector.

Bhubaneswar: The government of Odisha has unveiled a substantial compensation initiative totaling ₹291.59 crore, drawn from the state disaster response fund (SDRF), aimed at assisting farmers whose crops suffered damage due to unexpected rainfall during the kharif harvest season between December 20 and 28.

Chief Minister Mohan Majhi stated that the distribution of these funds will commence today. He pointed out that 6.66 lakh farmers, with 2.61 lakh of them being insured under crop insurance programs, have reported losses exceeding 33% across approximately 2.26 lakh hectares of agricultural land. This announcement follows a prior commitment from the government, made a week earlier, to identify farmers affected by the unseasonal rains by December 30, regardless of their insurance status.

Majhi elaborated that the financial aid, sourced from the SDRF, would be distributed through the direct benefit transfer (DBT) system. This approach is designed to ensure that relief reaches the affected farmers in a timely and transparent manner, particularly for those who have lost crops including paddy, vegetables, and betel leaves.

The Chief Minister emphasized the severity of the situation caused by the unexpected rainfall, which fell in two distinct phases during the designated period. The rains resulted in extensive flooding across many agricultural fields, leading to sprouting grains due to prolonged water exposure, rendering them unmarketable. Farmers on the brink of harvest were particularly hard hit, witnessing complete destruction of their yields, which has led to significant financial distress. Many farmers had taken out loans to support their farming activities, and the unforeseen rains have further complicated their ability to repay these debts, intensifying their financial challenges.

This compensation announcement appears alongside growing unrest among farmers, who have been protesting against irregularities in the procurement of paddy and have raised concerns over several farmer fatalities. In the past week alone, Odisha has reported the tragic loss of seven farmers—three have died by suicide, while four others suffered fatal cardiac arrests.