Defaulting Insurance Companies To Face Blacklisting, Says Maharashtra Agriculture Minister

Last Updated:July 02, 2025, 03:40 IST

Discussing the state’s new crop insurance scheme, Kokate assured the Legislative Council that the government is committed to ensuring farmers get fair and guaranteed compensation

Responding to a question, Kokate clarified that the crop insurance scheme is completely separate from capital investment plans for agriculture. (Image via X/@kokate_manikrao)

In a significant step to protect farmers and make the crop insurance system more transparent, Maharashtra Agriculture Minister Advocate Manikrao Kokate has announced that any insurance company found guilty of wrongdoing will be blacklisted by the government. Speaking in the Legislative Council during a discussion on the state’s new crop insurance scheme, Kokate assured the House that the government is committed to ensuring farmers get fair and guaranteed compensation based on actual harvest results.

The issue came up when member Amol Mitkari raised concerns about the high profits made by insurance companies under the old crop insurance policies. Leader of Opposition Ambadas Danve and members Sadabhu Khot and Satej Patil also participated in the discussion, pressing for stronger safeguards for farmers. Minister Kokate said that local representatives are being kept in the loop during damage assessment surveys, and their suggestions are taken seriously to improve the process.

A major highlight of the new scheme is its focus on harvest experiments. The government plans to make crop-cutting experiments the core of this scheme, which means compensation will be directly linked to the actual yield. If the harvest falls short of expected output, farmers will get due compensation without delays. Additional help will also be provided through the National Disaster Response Fund to ensure no farmer is left out.

Responding to another question by member Patil, Kokate clarified that the crop insurance scheme is completely separate from capital investment plans for agriculture. He pointed out that earlier, the government was spending Rs 5,000 to Rs 6,000 crore annually on crop insurance companies. Now, this spending has dropped to Rs 760 crore, freeing up nearly Rs 5,000 crore. This saved amount will be redirected to strengthen agriculture through investments in mulching, drip irrigation systems, storage facilities, and other infrastructure. The minister said that over the next five years, the state aims to invest around Rs 25,000 crore in capital expenditure for farming.

Taking note of various suggestions made by members, Kokate also promised that if any improvements are needed, meetings will be held with party leaders and MLAs to make the scheme better. The government’s assurance brings fresh hope to farmers who have long demanded stricter action against erring companies and more reliable compensation for crop losses.

Mayuresh Ganapatye

Mayuresh Ganapatye, News Editor at News18.com, writes on politics and civic issues, as well as human interests stories. He has been covering Maharashtra and Goa for more than a decade. Follow him at @mayuganapa...Read More

Mayuresh Ganapatye, News Editor at News18.com, writes on politics and civic issues, as well as human interests stories. He has been covering Maharashtra and Goa for more than a decade. Follow him at @mayuganapa...

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