The Maharashtra government has decided to scrap its ₹1 crop insurance scheme, which was introduced in 2023. The scheme allowed farmers to pay just ₹1 as a premium, with the remainder covered by the government. However, this initiative faced significant challenges due to widespread irregularities.

An official inquiry revealed that in the 2024-25 period alone, approximately 5.9 lakh fraudulent applications were submitted. These included claims from non-farmers, individuals from other states, and even non-agricultural lands such as places of worship and government properties. The state and central governments had collectively paid ₹478.5 crore in premiums for these bogus applications, which, if left unchecked, could have resulted in payouts up to ₹6,000 crore in the event of a calamity .​

In response to these issues, the state cabinet has decided to revert to the original Pradhan Mantri Fasal Bima Yojana (PMFBY). Under this scheme, farmers will now pay premiums of 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticultural crops. This move is expected to save the state between ₹5,000 to ₹6,000 crore annually .

The government has also announced plans to introduce a revamped insurance scheme for the upcoming Kharif season, starting in May 2025, aiming to better serve genuine farmers while addressing the shortcomings of the previous initiative .​

Sources