Maharashtra's Revised Crop Insurance: A Fresh Start Amid Past Scandals

Maharashtra Agriculture Minister Manikrao Kokate has announced the rollout of a new crop insurance scheme following revelations of fraud and profiteering in earlier iterations. The state government detected significant irregularities, with insurance firms amassing Rs 10,000 crore in profits while farmers saw little benefit.

Previously, the state had implemented a Rs 1 premium scheme, with the majority of costs covered by the government. However, reports of rampant cheating and profit-taking by insurers and middlemen have prompted reforms, according to Kokate, who discussed these issues in the legislative council.

The reformed insurance policy, beginning with the 2023 kharif season, seeks to address these challenges, ensuring farmers contribute only 1.5 to 2 percent of the insured amount as a premium. Officials view the changes as necessary to curb misconduct and better support Maharashtra's farmers.

(With inputs from agencies.)