- Maharashtra government has cancelled the ‘Ek Rupayat Pik Vima Yojana’ (One Rupee Crop Insurance Scheme).
- The decision happened because of reported problems, fake registrations, and possible scams.
- Farmers like you will now have to pay crop insurance premiums using the old system: 2% for Kharif, 1.5% for Rabi, and 5% for cash crops.
Important news for farmers in Maharashtra: The state government, led by Chief Minister Devendra Fadnavis, has decided to stop the popular ‘Ek Rupayat Pik Vima Yojana’ (One Rupee Crop Insurance Scheme). This important decision was made during a state cabinet meeting on Tuesday, April 29, 2025. This move comes due to reports of many problems, fake registrations, and a possible multi-crore scam linked to the scheme. If you were using this scheme, you need to know about the changes.
Maharashtra Stops ‘Ek Rupayat Pik Vima Yojana’
Maharashtra state government has cancelled the ‘Ek Rupayat Pik Vima Yojana‘. This scheme, which let farmers insure their crops for just one rupee, has been stopped. The decision was announced after a cabinet meeting, due to serious worries about how it was being run and possibly misused. This might be surprising news for many farmers who paid a very small premium.
Reasons for Cancellation: Scams and Problems
The government stated that stopping the scheme was needed because of several worrying problems that came up. There were many complaints about:
- Fake Registrations: Many fake entries were supposedly made under the scheme.
- Money Misuse: Worries came up about possible large money scams.
- Problems with how it worked: Reports of wrong things and bad management came up from different districts where the scheme ran for the past two years.
- Farmers being unhappy: Although it seemed good at first, farmers were increasingly unhappy about the lack of clarity and getting claims paid on time by insurance companies.
Government sources said that these increasing problems and criticisms gave them no choice but to stop the scheme to prevent more possible fraud.
What the cancelled scheme was about
‘Ek Rupayat Pik Vima Yojana’ was started in 2022 as a trial in some districts of Maharashtra. Its main goal was to give crop insurance coverage to farmers, especially those with small and medium farms, at a small cost of just ₹1. The state government paid the rest of the premium amount. It aimed to offer big relief to farmers facing crop losses. However, because of the reported wrongdoings, its planned benefits didn’t get to all real farmers properly.
New Crop Insurance Process for Farmers
With the cancellation of the one-rupee scheme, Maharashtra is going back to the old system for crop insurance under the Pradhan Mantri Fasal Bima Yojana (PMFBY). This means you, as a farmer, will now need to pay a part of the insurance premium.
Here are the premium rates farmers will have to pay:
| Crop Season/Type | Farmer’s Premium Share |
|---|---|
| Kharif Crops | 2% of the sum insured |
| Rabi Crops | 1.5% of the sum insured |
| Commercial/Horticultural (Cash) Crops | 5% of the sum insured |
The selection of insurance companies to run the scheme will now happen through a tender process, to make things clearer.
What About Fruit Crop Insurance?
Please note that this cancellation does not affect the Restructured Weather-Based Fruit Crop Insurance Scheme. This scheme, which is part of the larger ‘Pradhan Mantri Fasal Bima Yojana’ (PMFBY), will continue as before. So, if you grow fruits, your insurance process stays the same.
How This Change Affects Farmers
The main effect of stopping the ‘Ek Rupayat Pik Vima Yojana’ is financial. You will now have to set aside money to pay the needed insurance premium based on your crop type and season. Although the one-rupee scheme greatly lowered the cost upfront, going back to the percentage-based premium system means you’ll pay more yourself to insure crops. The process is that you’ll need to follow the usual PMFBY sign-up steps and pay the right premium percentage.
Also, the state cabinet approved a large amount of ₹25,000 crore for agricultural development over the next five years. This money aims to increase investment and build facilities, with ₹5,000 crore set aside each year. This shows they are still committed to farming, even as this specific insurance scheme changes.