₹1 crop insurance plan junked to save ₹7,000 cr

Another jolt for farmers after Ajit Pawar ruled out farm loan waivers for at least two years

- Surendra P Gangan

MUMBAI: The state government is winding up its ambitious ₹1 crop insurance scheme launched with much fanfare two years ago. A new version of the scheme will be introduced from the new kharif season starting in May.

The announcement follows a decision by the state government on Friday, to cancel the loan waiver offered to the state's farmers. Cautioning them not to believe every promise the government made, state finance minister and deputy chief minister Ajit Pawar told farmers they would have to repay all pending loans.

Scrapping the ₹1 crop insurance scheme, albeit ridded with irregularities, will save the Mahayuti government ₹7,000 crore at a time when it is confronted by a fiscal deficit of ₹1.33 lakh crore in FY2024-25.

The decision to scrap the scheme came after the state agriculture department made a presentation to chief minister Devendra Fadnavis and his two deputies Ajit Pawar and Eknath Shinde on March 20. Launched by the Mahayuti government in 2023, the scheme was plagued with irregularities, mainly bogus claims.