Maharashtra Cabinet Approves Farm Loan Waiver of Up to Rs 2 Lakh, 56 Lakh Farmers to Benefit
The Maharashtra cabinet has approved a farm loan waiver scheme, which is expected to benefit nearly 56 lakh cultivators, fulfilling a major pre-poll promise made by the ruling Mahayuti alliance in 2024.
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After months of anticipation, the Maharashtra government has approved a major farm loan waiver scheme aimed at providing relief to millions of farmers across the state. The decision was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis on Tuesday.
Under the 'Punyashlok Ahilyadevi Holkar Shetkari Karjamukti Yojana', eligible farmers will receive a waiver of agricultural loans of up to Rs 2 lakh. The scheme fulfills one of the key promises made by the ruling Mahayuti alliance ahead of the 2024 Maharashtra Assembly elections.
In addition to the loan waiver, the cabinet has announced incentives for farmers who have demonstrated timely loan repayment. Cultivators who repaid crop loans on schedule at least twice during the three financial years from 2022-23 to 2024-25 will be eligible for an incentive of up to Rs 50,000.
According to an official source, the scheme is expected to cost the state government approximately Rs 36,585 crore and benefit around 56 lakh farmers. The government believes the initiative will provide substantial relief to farmers burdened by debt while strengthening the agricultural sector.
Farmers in Maharashtra have been awaiting a loan waiver since the Mahayuti alliance came to power. The demand for debt relief gained momentum amid adverse weather conditions and falling prices of several agricultural commodities, including onions, which caused significant losses to cultivators.
The state government said the scheme would help ease financial stress among farmers and encourage responsible borrowing and repayment practices through the incentive component.
However, opposition parties have questioned the conditions attached to the scheme and its implementation. The Congress and the Nationalist Congress Party (Sharad Pawar faction) have demanded a complete waiver of all outstanding farm loans. NCP (SP) MLA Rohit Pawar criticized the eligibility conditions of the loan waiver scheme, while Congress leaders said the announcement should not remain merely on paper and called for unconditional relief for all farmers.
The government's decision is being viewed as a significant intervention at a time when farmers are grappling with rising cultivation costs, climate-related uncertainties, and income pressures. Detailed guidelines regarding eligibility criteria and implementation are expected to be released in the coming days.
