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Maharashtra Ends ₹1 Crop Insurance Model Over Fiscal Stress

2 April 20251 min read
AGRICULTURE & RURALMaharashtra Ends₹1 Crop InsuranceModel Over FiscalStress2 April 2025safalsetu.com

Why in the news

Maharashtra is ending its ₹1 crop insurance model, citing fraud, high cost and a strained budget.

Key facts

  • Replacement: revised scheme from the kharif season of May 2025.
  • Fraud: claims for non-existent crops on government, temple and dam land; ₹80 crore saved by catching them.
  • Finances: fiscal deficit ₹1.33 lakh crore in FY2024-25; debt projected at ₹9.32 lakh crore by FY2025-26.
  • Low payouts despite high premium costs; the farmer loan waiver was also scrapped.

Way forward

Future policy will favour drip irrigation, farm ponds and mechanised sowing, and trim unproductive spending.

Exam angle

  • Earlier national scheme used for comparison: PM Crop Insurance Scheme.
  • Agencies involved in false applications: CSCs.

Test yourself

1. The Maharashtra government's ₹1 crop insurance scheme, being wound up in April 2025, was launched in which year?

The state is closing the ₹1 crop insurance scheme that began in 2023.

2. How many Common Service Centres were suspended in Maharashtra's ₹1 crop insurance fraud action?

96 CSCs were suspended for filing false applications to earn processing fees.

3. Under Maharashtra's ₹1 crop insurance scheme, what was the cost compared with the PM Crop Insurance Scheme's ₹3,500 crore?

The scheme cost ₹10,500 crore against ₹3,500 crore under the PM Crop Insurance Scheme.

This topic is part of Daily Current Affairs 2 April 2025 (21 topics).

All topics of the dayDay quizApril 2025

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