State Ends ₹1 Crop Insurance Scheme Amid Fake Application Scandal

Fast Summary

• State cabinet scraps Rs 1 Crop Insurance Scheme due to irregularities.
• Under scrutiny: 5.9 lakh bogus applications discovered in 2024-25.
• Rs 478.5 crore in government premiums paid for fraudulent applicants.
• Potential payouts from bogus applications could have reached Rs 6,000 crore during calamities.
• Original scheme introduced in March 2023 reduced farmer premium to Rs 1 under PM Crop Insurance Scheme rates; now reverted to central premium charges (1.5%-5%).
• Issues included farmers applying from other states and insured land being places of worship or non-agricultural/government properties.
• Common Service Centres (CSCs) processed many fake applications,reportedly inflating numbers for honorarium incentives via Rs 40 per application fee-96 CSCs flagged as involved.
• Inquiry revealed an applicant spike when lowering fees; rising from 1.4 crores to over two crores between Kharif and Rabi seasons (2023-24).

– Revamped kharif season variant scheme Launch targeted upcoming restructuring/use extra premium machinery proceeds Building Agricultural-purpose Infrastructure Capital after FY outrageous loopholes forwards misuse against transformations

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