At the meeting, the minister cited specific examples: in one case, a farmer from Madhya Pradesh whose crop was insured under PMFBY had the loss shown as “zero” despite claiming compensation, yet received a payout of only ₹1.

In a stern message to administrators and insurers managing the Pradhan Mantri Fasal Bima Yojana (PMFBY), union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan today convened a high-level meeting in Delhi and summoned state officials and insurance company heads after farmers reported receiving token claim amounts of ₹1, ₹3, ₹5 or ₹21 under the scheme.

Taking virtual testimony from farmers in Maharashtra and a district in Madhya Pradesh, the minister expressed serious concern at what he called a “mockery” of the insurance scheme designed to protect farmers from crop losses.

“Receiving ₹1, ₹3 or ₹5…. is farmers being treated as a joke; the government will not allow this,” Chouhan told officials.

Faulty Claims Trigger Action

At the meeting, the minister cited specific examples: in one case, a farmer from Madhya Pradesh whose crop was insured under PMFBY had the loss shown as “zero” despite claiming compensation, yet received a payout of only ₹1. In another, loss was recorded at 0.004806 per cent and the payout again was just ₹1.

These anomalies prompted Chouhan to instruct a full field-investigation into how such paltry payments were sanctioned. He directed the PMFBY CEO to dig into every case where such minimal payouts were made, to confer with local collectors and verify the systems used, including remote-sensing technology for assessing crop damage.

Calls for Systemic Fixes

Beyond individual payouts, the minister directed that:

• insurers must ensure their representatives are present during damage surveys so that fraud or mistakes do not slip through.
• claims must be processed “quickly and together” to avoid delays and confusion among farmers.
• states must immediately pay their share of subsidies to enable timely claim disbursement – otherwise, the Centre may recover 12 per cent interest from defaulting states.
• the damage-assessment methodology needs an audit: are remote-sensing systems calibrated and accurate? Do guidelines need revision given the prevalence of tiny payouts?

Why the uproar?

The PMFBY is one of the flagship initiatives of the government, intended as a protection cover for farmers. Yet, according to the minister, “some things have happened that have tarnished this important scheme and provided fodder for propaganda.”

Farmers in both Maharashtra and Madhya Pradesh logged complaints that despite taking insurance cover, their payout was negligible – raising questions of fairness, transparency and the integrity of the process. The minister underscored that “this is not a joke” and pledged to pursue the matter thoroughly.

States Under Scrutiny

The meeting brought together senior agricultural officers from Maharashtra, district officials from Madhya Pradesh (in the minister’s home region), and top executives of all crop-insurance companies.

Chouhan drew attention to role of states in delays – if subsidy contributions are withheld or delayed, claim payouts get stalled, and the blame may fall on the Centre. He asked officials to explain why states were lagging in their commitments, and warned of administrative action if the problem persisted.

Technology and Transparency Emphasised

Highlighting the need for clearer systems and farmer empowerment, the minister said that farmers must be “connected with technology” so that the process remains transparent and errors or manipulations are minimised. He said that though remote sensing is used, its authenticity and calibration should be checked thoroughly.

Officials present were told to propose necessary amendments to the scheme guidelines to address tiny payouts and ensure timely, meaningful compensation. A timeline for the investigation and corrective action was ordered, with the minister warning that he would follow up personally and will not tolerate such irregularities.

Officials acknowledged the shortcomings in the PMFBY. They said that they understand that for farmers who depend on claims to recover from crop loss induced by adverse conditions, this intervention signals the government’s resolve – but only effective follow-through will rebuild trust.

“If payouts begin to reflect actual losses quickly and transparently, the PMFBY can regain its credibility; if not, the minister’s tough words may soon turn into reforms,” one official said.