Maharashtra Approves Rs 36,585 Crore Farmer Loan Waiver: A Relief for 55.70 Lakh Farmers
The Maharashtra state cabinet has approved a significant loan waiver for farmers, amounting to Rs 36,585 crore. This decision will benefit 55.70 lakh farmers who have been struggling with debt. The move comes in response to insufficient rainfall and the potential for drought conditions in the state. The loan waiver was a key promise made to voters during the 2024 assembly election campaign.
The cabinet decided to deposit the waiver sum directly into the bank accounts of farmers before June 20, under the Punyashlok Ahilyabai Holkar Farmers’ Loan Waiver Scheme. This scheme provides relief for loans up to Rs 2 lakh. Chief Minister Devendra Fadnavis explained that while the decision was taken in the cabinet, it was not announced earlier due to the poll code of conduct in place for the legislative council election.
The scheme is expected to cover more than 65 lakh accounts. During the 2024 assembly election, Fadnavis had announced the Punyashlok Ahilyabai Holkar Farmers’ Loan Waiver Scheme, which was later approved in the budget session of the state legislature. The scheme outlines that farmers with outstanding crop loans as of September 30, 2025, will be given a loan waiver of up to Rs 2 lakh. Additionally, an incentive fund of Rs 50,000 will be provided to farmers who repay their crop loans regularly.
Now, the government will pay the entire loan amount for farmers with outstanding loans up to Rs 2 lakh. However, for farmers with loans exceeding Rs 2 lakh, the government will pay the Rs 2 lakh waiver only after they have settled the amount above Rs 2 lakh. An official stated, “Through this scheme, it was announced that farmers whose crop loans are outstanding as of September 30, 2025, will be given a loan waiver of up to Rs 2 lakh and an incentive fund of Rs 50,000 will be given to farmers who repay their crop loans regularly.”
The opposition has criticized the state government for the delay in implementing the loan waiver. Last year, Shiv Sena (UBT) president Uddhav Thackeray had criticized Fadnavis over his announcement that the state government would make a final decision on the farm loan waiver before June 30 this year. Thackeray emphasized that farmers must be made debt-free immediately without any further suffering.
Despite the criticism, the government's decision is expected to provide significant relief to the farming community in Maharashtra, helping to alleviate the financial burden and improve their livelihoods.
