India, April 1 -- The state government is winding up its ambitious Rs.1 crop insurance scheme launched with much fanfare two years ago. A new version of the scheme will be introduced from the new kharif season starting in May.

The announcement follows a decision by the state government on Friday, to cancel the loan wavier offered to the state's farmers. Cautioning them not to believe every promise the government made, state finance minister and deputy chief minister Ajit Pawar told farmers they would have to repay all pending loans.

Scrapping the Rs.1 crop insurance scheme, albeit ridded with irregularities, will save the Mahayuti government Rs.7,000 crore at a time when it is confronted by a fiscal deficit of Rs.1.33 lakh crore in FY20...