Manikrao Kokate, the minister of agriculture for Maharashtra, acknowledged that there were issues with the Re 1 crop insurance program for farmers, pointing out that places of worship were included as agricultural properties for the sake of benefit claims.

According to Kokate, over four lakh applications for crop insurance have been denied, some of which were submitted by individuals living outside of Maharashtra. Kokate also stated on Tuesday that a "bogus industry" has emerged in which ineligible individuals attempt to obtain benefits from the program. However, the minister insisted that no money had been squandered as the government had not deposited funds into the bank accounts associated with fraudulent applications.

Speaking to the media today, Kokate stated that instances of malpractice in the system have been found in several areas, such as when abandoned lands, mosques and temples were fraudulently listed as agricultural fields in order to receive benefits. "I have instructed district collectors to take immediate action," he said. 

In the 2023 budget, the crop insurance scheme was introduced by Devendra Fadnavis, who was the deputy chief minister and finance minister at the time. This scheme allows farmers to get crop insurance for just Re 1. Previously, farmers had to pay 2% of the insurance premium to the company. However, the agriculture department received many complaints from farmers about issues with the scheme, mainly regarding non-payment of the insurance amount and mismatched records. Later, a committee chaired by Agriculture Secretary Vikaschandra Rastogi gathered the allegations and looked into them. Kokate said, "Over four lakh crop insurance applications were rejected across the state. Some of these applications were filed by people from outside Maharashtra. We have taken significant steps to address the irregularities. Farmers will be issued unique ID cards linked to Aadhaar to ensure transparency."

Significant changes will be made to the program, the minister stated, adding that an updated database of farmers is being produced. When asked how large-scale bogus claims could be made, Kokate explained that much of the malpractice is linked to certain Common Service Centres (CSCs), where people involved in entering farmers' details are paid Rs 40 for each application. "The operators of such centres filed bogus applications to earn more. We have ordered action against 96 such centres," he said.

The minister, however, stated that the program will continue to be in place and that not all farmers should be held accountable for the irregularities. "This (detection of corruption) does not mean the scheme should be shut down. The flaws will be corrected to make the scheme more transparent," the NCP minister assured. Actions have been made in the last few days, he said, and the state cabinet will discuss the matter. "If changes are needed in the scheme, we will study them and present the matter in the cabinet. Ultimately, all decisions regarding the scheme will be taken there," he said.

Kokate rejected claims that irregularities occurred only in the Beed district in central Maharashtra, calling them politically motivated. "The government has saved funds by rejecting bogus applications, and no money was transferred into the accounts linked to these invalid applications," he said. BJP leader and former state finance minister Sudhir Mungantiwar stated that calling the Re 1 crop insurance scheme "flawed" would be inaccurate. "We have taken Rs 1,551 crore worth of insurance for farmers. If any company provides 80 per cent compensation for losses, our contribution decreases. Beyond 100 to 120 per cent losses, we bear the full burden. Today, the farm sector requires a mission akin to 'Mission Jai Kisan'. It is essential to focus seriously on this area," Mungantiwar said.

Maharashtra Congress chief Nana Patole has alleged a major crop insurance scam in Beed district. He claimed that insurance was fraudulently claimed for barren land, leading to irregularities worth ₹350 crore. Patole accused insurance companies and the Mahayuti government of colluding to misuse funds intended for farmers. "While farmers have not received compensation, the insurance companies have profited significantly by looting their funds," Patole alleged. Radhakrishna Vikhe Patil, the cabinet minister for water resources (Godavari and Krishna Valley Development Corp), argued in favour of the program's continuation. "The scheme was launched by Fadnavis and it has proved to be helpful to farmers. Some people are unnecessarily speculating on scrapping the scheme because of some allegations. No such plan or proposal is before the state government," he told reporters in Pune.