Last Updated: 28 September 2026

Crop compensation refers to the process of providing financial reimbursement to farmers for losses incurred due to adverse climate

2025 Floods: Rs 20,000 per acre compensation for crop loss approved on 8 Sept 2025 (Rs 6,800 under disaster rules + Rs 13,200 from Punjab Govt)^[1]
-- Crops on 4.30 lakh acres were destroyed
-- 'Jisda Khet, Usdi Ret': Farmers allowed to sell/keep sand & silt deposited on their fields by floods^[1:1]

25% hike in the compensation for the crop loss to the farmers annoucement by CM Bhagwant Mann on 26 March 2023^[2]
-- i.e. Now Rs 15,000 per acre will be paid, instead of Rs 12,000 for 75-100% damage

1st Time, Farm Labourers also to get 10% additional share as compensation

CM Bhagwant Mann emphasized that the government stands with farmers during this crisis and will leave no stone unturned for their welfare^[3]

¶ Details^[4]

The increased compensation is wholly funded by Punjab Govt's main budget

• SDRF (State Disaster Relief Fund) rules are governed by Center Govt
• Hence Punjab Govt can not change amount without permission

¶ New Insurance Policy in works

• The state government is working on introducing a crop insurance scheme to further safeguard farmers’ interests

REFERENCES:

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1. https://www.tribuneindia.com/news/punjab/punjab-cabinet-announces-flood-relief-rs-20000-per-acre-compensation-for-farmers ↩︎ ↩︎

2. https://www.tribuneindia.com/news/punjab/if-crop-loss-more-than-75-farmers-to-get-15-000-acre-491561 ↩︎

3. https://timesofindia.indiatimes.com/city/chandigarh/15k-per-acre-relief-if-crop-damage-is-75-and-more-says-cm-mann/articleshow/99022082.cms ↩︎

4. https://indianexpress.com/article/cities/chandigarh/punjab-cabinet-decision-farmers-enhanced-compensation-crop-loss-baisakhi-8531529/ ↩︎