Shivraj Singh Chouhan Orders Nationwide Probe After Farmers Receive ₹1 Crop Insurance Claims
03 November 2025, New Delhi: The Union Minister for Agriculture & Farmers’ Welfare and Rural Development, Shivraj Singh Chouhan, has taken stern action after reports surfaced of farmers receiving crop insurance payouts as low as ₹1, ₹2, or ₹3 under the crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY). In a high-level meeting held in New Delhi today, the minister ordered an immediate inquiry into the irregularities and expressed his firm resolve to ensure justice and relief for affected farmers.
The meeting was attended by senior ministry officials, representatives from multiple crop insurance companies, and state agricultural authorities. The minister also connected virtually with farmers from Maharashtra and Sehore district in Madhya Pradesh to hear firsthand the issues they were facing under the PMFBY. Many of these farmers reported that despite suffering significant crop losses, the compensation credited to their accounts was shockingly low. Minister Chouhan described such payouts as “nothing short of an insult to farmers who trusted the scheme.”
He stated that the crop insurance system was designed to act as a safety net for farmers devastated by natural calamities, not as a symbolic gesture of relief. The minister emphasized that the system could not be allowed to turn into a mockery of farmer welfare. He instructed the CEO of the PMFBY to initiate field-level investigations into cases where compensation was far below expectations.
Chouhan raised concerns over the reliability of current damage assessment methods, such as remote sensing, and called for a scientific review of the processes being used to measure crop loss. He also directed insurance companies to ensure their representatives are physically present during field surveys to avoid discrepancies and ensure transparency in claim processing.
The minister strongly criticized states that were delaying their share of premium subsidies under the scheme. He said such delays result in payment setbacks to farmers and create unnecessary criticism of the Central Government. Chouhan made it clear that states that continue to delay their contribution will be liable to pay 12% interest on the pending amount, as per existing provisions.
Throughout the meeting, farmers shared distressing stories of receiving ₹1 or ₹2 for insured crops like soybean and paddy. Chouhan assured them that such anomalies would be thoroughly investigated and resolved, reiterating that the government would not allow farmers to face unnecessary hardship due to administrative negligence or technical gaps.
The minister ended the session by urging officials, state representatives, and farmers to come forward with suggestions to strengthen and streamline the scheme. “The trust of India’s farmers is our biggest priority,” he said. “We will ensure that the Pradhan Mantri Fasal Bima Yojana works as a true safety shield for them, not as a token gesture.”
A preliminary report is expected soon, followed by further corrective measures to restore trust and credibility in the crop insurance system across India.
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