Rain damage: Will Gujarat’s ₹7,000 cr crop relief be enough if capped at ₹45,000 per farmer?

Recent unseasonal rains have damaged crops across nearly 30 lakh hectares in Gujarat, impacting more than 15,000 villages and an estimated 17 lakh farmers. The state government is set to announce an agricultural relief package worth between ₹6,000 crore and ₹7,000 crore, but the compensation per farmer is likely to remain limited, prompting concerns that the support will not match the scale of losses.

Relief unlikely to match actual losses

Compensation is expected to be offered on a per-hectare basis with an upper limit of two hectares per farmer. Even if the per-hectare payout is raised, the maximum assistance would be around ₹40,000–₹45,000 per farmer. 

This remains far below the average estimated loss of ₹50,000 per farmer, when factoring in expenditure on seeds, fertilisers, pesticides, labour and irrigation, along with the value of the lost crop. 

Under previous relief provisions, farmers received ₹13,500 per hectare, which farmers say covers only a fraction of the loss. This time, the amount may be increased to ₹20,000–₹22,000 per hectare, but farmer groups point out that the revised compensation still falls short, especially in cases of severe damage.

Saurashtra worst affected

Initial assessments suggest widespread losses across the state:

North Gujarat: 4.14 lakh hectares damaged, affecting over 40,000 farmers

South Gujarat: 5.61 lakh hectares affected

Saurashtra: worst-hit, with damage over 25.60 lakh hectares

Central Gujarat: around 3 lakh hectares impacted

The situation could affect the upcoming rabi season, adding to financial stress in rural regions.

Complaints over survey delays and eligibility issues

In districts including Chhotaudepur, farmers have complained that crop damage surveys have been delayed, with some alleging that officials have not visited affected fields at all. In parts of Saurashtra, protests continue, with farmers staging symbolic demonstrations such as banging metal plates.

Many have also highlighted that not all affected farmers qualify for bank loans. Without access to formal credit, and with compensation limited, their financial recovery remains uncertain.

No report submitted to Centre yet

The Union government informed the Rajya Sabha that Gujarat has not submitted its report on rain-related crop damage, which was due by October 31. Since the report has not been sent, the question of central assistance does not arise.

No crop insurance cushion this time

Farmers pointed to 2019 as a contrast, when crop insurance coverage was widespread. That year, a ₹3,750-crore state relief package combined with insurance payouts, totalling around ₹10,000 crore. This year, however, crop insurance has not been active or available in many of the affected talukas. Without insurance backing, farmers say they will have to rely solely on the relief assistance, which they argue is inadequate for the scale of the losses.

Outlook

While the ₹7,000-crore relief package is expected to be the largest yet announced in the state, the cap on compensation and delays in assessment are likely to intensify dissatisfaction among affected farmers. Calls for broader measures, including loan waivers, are expected to grow louder in the coming weeks.