While presenting the 2023–24 state budget, Deputy Chief Minister and Finance Minister Devendra Fadnavis declared that farmers in Maharashtra would be able to enroll in the Pradhan Mantri Fasal Bima Yojana by paying a token premium of just ₹1. The announcement was not limited to words; the government subsequently rolled out the scheme as promised.The nominal premium crop insurance initiative generated an overwhelming response from cultivators across the state. For the 2023 Kharif season, applications poured in on a massive scale. Out of the total submissions, 52,26,111 farmers were approved under the scheme. Compensation amounting to ₹5,292 crore was directly credited to the bank accounts of eligible beneficiaries, providing significant financial relief against crop-related losses.The scale of participation and the substantial disbursal figures underscored the widespread acceptance of the ₹1 crop insurance program among the farming community.
Rs. 1 Crop Insurance Scheme of Maharashtra, a security umbrella for farmers with more claim disbursals ever
Maharashtra’s ₹1 premium crop insurance initiative operates within the framework of the Pradhan Mantri Fasal Bima Yojana (PMFBY). The scheme is designed to shield farmers from financial distress arising out of crop losses due to natural disasters, pest attacks, or diseases. Beyond compensation for damage, PMFBY also seeks to provide income stability so that cultivators can continue agricultural activities without being pushed into uncertainty.The Kharif component of the scheme was introduced in 2016, during the first tenure of Devendra Fadnavis as Chief Minister of Maharashtra, under the leadership of Narendra Modi at the Centre. Following its implementation, a record number of farmers in the state reportedly benefitted from insurance coverage and claim settlements.
Comparative data often cited by supporters highlights a sharp increase in compensation after 2014. Between 1999 and 2014, during the Congress-NCP administration in Maharashtra, around 1.8 crore farmers received a cumulative ₹7,680 crore in crop insurance payouts over 15 years. In contrast, during the four-year period from 2014 to 2018, approximately 2.14 crore farmers in the state were provided with claim settlements totaling ₹11,952 crore under PMFBY.On an annual basis, this translates to an average disbursal of about ₹512 crore per year prior to 2014, compared to roughly ₹2,988 crore per year after the formation of the Modi-led government at the Centre. Proponents argue that these figures demonstrate a substantial expansion in both coverage and financial support extended to farmers in Maharashtra through the revamped crop insurance framework.
If farmers are ready to pay Rs.1, the government will pay the premiums for them
The Pradhan Mantri Fasal Bima Yojana was introduced by the Union Government in 2016 along with detailed operational guidelines. As per Clause 13.1.10 of these guidelines, the responsibility of paying the bulk of the insurance premium rests with the state government, while farmers are required to contribute only a nominal ₹1 as a token amount for purposes such as electronic registration and tracking.Referring to this provision, then Finance Minister Devendra Fadnavis, during his 2023–24 budget presentation, declared that cultivators in Maharashtra would be able to avail themselves of crop insurance coverage by paying just ₹1. The announcement was subsequently placed before the state cabinet, chaired by the Chief Minister, and received formal approval on 30 May 2023.It was further resolved that the scheme would be executed through a competitive tendering mechanism and implemented for a three-year period, beginning with the Kharif and Rabi seasons of 2023–24 and continuing through 2025–26.
The Rs.1 crop insurance coverage, other conditions, and registration process
Soon after the cabinet cleared the proposal on 30 May 2023, the Government of Maharashtra formally announced on 23 June 2023 the rollout of a Comprehensive Crop Insurance Scheme. In line with the framework of the Union government’s Pradhan Mantri Fasal Bima Yojana, the state enabled farmers to secure insurance coverage by contributing just ₹1. The objective was to shield cultivators from monetary losses arising out of crop damage caused by natural disasters, pest attacks, or other unforeseen events.
For the agricultural year 2023–24, the scheme was operational during both the Kharif and Rabi seasons. Farmers were entitled to seek compensation under several circumstances, including:
Damage to crops at any stage from sowing to harvest due to events such as fire triggered by natural causes, lightning, hailstorms, storms, cyclones, floods, waterlogging, landslides, drought, insufficient rainfall, pest infestations, and crop diseases.
Situations where sowing or planting could not be undertaken because of unfavorable weather or rainfall deficit.
Instances where yields dropped below 50% of the normal average owing to seasonal adversities like floods, droughts, or extended dry spells.
For the 2024 Kharif cycle, coverage extended to 14 notified crops: rice, jowar, soybean, cotton, tur, moong, urad, maize, bajra, gram, groundnut, sesame, bitter gourd, and onion. The Agriculture Department also declared district- and taluka-wise compensation benchmarks for each of these crops.
Eligibility was broadened to include all categories of cultivators—whether they had availed crop loans or not. Farmers cultivating leased land were also permitted to enroll. Sharecroppers and tenant farmers were required to upload lease deeds and crop-sharing agreements on the PMFBY portal to validate their participation.
During registration, applicants had to provide their Aadhaar number, ensuring that the name entered matched exactly with the Aadhaar records. Once claims were approved, compensation amounts were credited directly into Aadhaar-linked bank accounts registered on the PMFBY portal, ensuring transparency and direct benefit transfer to insured farmers.
