Andhra farm policies face criticism from Jagan while government points to PMFBY and irrigation projects

YSR Congress Party president Y.S. Jagan Mohan Reddy on Thursday accused Chief Minister N. Chandrababu Naidu of “abandoning farmers” and creating a “man-made calamity” in the state’s agriculture sector by withdrawing crop insurance benefits and delaying subsidies. The state government, however, maintains that new initiatives under the Central crop insurance scheme and irrigation projects are providing support to farmers.

In a statement issued from Amaravati, Jagan alleged that the NDA coalition government led by the Telugu Desam Party (TDP) had “failed to protect the farming community” since assuming office in June 2024. He said crop insurance premiums had not been paid, input subsidies were pending, and procurement of major crops such as chilli, mango, onion, and tobacco had been ignored.

“The government has insured only 19 lakh farmers and 19 lakh acres, mostly those who availed bank loans, while over five lakh farmers are still waiting for ₹600 crore in input subsidy,” Jagan said. He contrasted this with his previous YSRCP government’s “free crop insurance” scheme that he claimed had covered 85 lakh farmers and disbursed ₹7,800 crore in compensation between 2019 and 2024.

Jagan further alleged that no insurance premium was paid for two years and questioned the government’s commitment to crop security. “Where is the assurance now for the remaining farmers?” he asked.

PMFBY replaced free crop insurance

According to official government records, the NDA government discontinued the YSR Free Crop Insurance Scheme after coming to power and reinstated the Pradhan Mantri Fasal Bima Yojana (PMFBY) in June 2024 through GO Rt. No. 207 of the Agriculture Department .

Under PMFBY, farmers pay a small share of the insurance premium—2% for Kharif crops, 1.5% for Rabi, and 5% for commercial crops—while the rest is shared equally by the Central and State governments.

Data from the Andhra Pradesh Agriculture Department shows that about 19.2 lakh farmers and 19 lakh acres were insured during the 2024–25 Kharif season, mainly through Kisan Credit Card (KCC)-linked accounts where banks deducted the farmers’ premium share.

While the free insurance model of the previous regime covered a much larger base, the current PMFBY model ensures cost-sharing and aligns Andhra Pradesh with the national scheme.

Subsidy delays but relief measures underway

Government orders reviewed by this newspaper show that ₹380 crore in drought and pest damage compensation was sanctioned in August 2025 ( GO Rt. No. 102, Agriculture Department ), while another ₹120 crore was released in October 2025 for Cyclone Montha losses ( GO Rt. No. 166, Revenue Department ). Officials said further disbursals are pending verification from district committees.

The Naidu government has also rolled out an integrated farmer-support platform called “Annadata Unnathi” to streamline fertilizer, irrigation, and subsidy management. In June, the Chief Minister announced a crop loan waiver of up to ₹50,000 for small and marginal farmers under the first phase of the Farm Debt Relief Scheme.

Additionally, the state reintroduced the Free Sand Policy in March 2025 and accelerated irrigation projects under Handri–Neeva, Galeru–Nagari, and Polavaram, claiming these would enhance water availability for cultivation.

Procurement under MSP limited

Farmers’ unions, however, agree that procurement under the Minimum Support Price (MSP) framework has remained limited. The MARKFED and Civil Supplies Corporation conducted MSP operations primarily for paddy and millets, with little intervention in chilli, tobacco, or mango markets.

MSP, fixed by the Central Government on the recommendation of the Commission for Agricultural Costs and Prices (CACP), is the minimum price at which farmers can sell their crops to prevent distress sales. State agencies are responsible for implementing procurement drives, depending on available funds.

Opposition plans statewide rallies

Jagan also reiterated his party’s opposition to what he termed the “privatisation of government medical colleges,” announcing rallies across all Assembly constituencies on November 11, postponed earlier due to Cyclone Montha.

He said government medical colleges were crucial for accessible healthcare and education for poorer sections.

The ruling TDP has not yet responded to Jagan’s latest statements, though officials in the Agriculture Department insist that the state’s crop insurance and relief systems are being realigned “to ensure transparency and financial discipline.”