Farm Loan Waiver in Maharashtra: Cabinet Approves INR 2 Lakh Debt Relief for 56 Lakh Farmers
The Maharashtra state cabinet on Tuesday officially cleared a major farm loan waiver scheme, offering substantial financial relief to agrarian communities across the state. Under the newly approved "Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna," the government will waive agricultural crop loans of up to INR 2 lakh per eligible farmer.
The Maharashtra state cabinet on Tuesday officially cleared a major farm loan waiver scheme, offering substantial financial relief to agrarian communities across the state. Under the newly approved "Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna," the government will waive agricultural crop loans of up to INR 2 lakh per eligible farmer. Sources within the state administration indicate that the massive debt-relief measure is expected to directly benefit approximately 56 lakh farmers. The cumulative financial burden on the state exchequer to execute this structural payout is estimated to hover around INR 36,000 crore.
While the decision was formalized during the cabinet meeting chaired by Chief Minister Devendra Fadnavis alongside Deputy Chief Minister Eknath Shinde, the state government has refrained from making an immediate, high-profile public announcement. This restraint is due to the Model Code of Conduct currently in place for the upcoming Legislative Council (MLC) elections. Maharashtra Pushes Crop Loan Disbursal, Relaxes CIBIL Restrictions for Farmers Ahead of Weak Monsoon Fears.
Chief Minister Fadnavis clarified that the Election Commission of India (ECI) permitted the cabinet to process data and advance the scheme administrative-wise, provided no promotional announcements were made until voting concluded. The ECI cleared the file on the grounds that the program was initially outlined during the state budget session in March and its targeted beneficiaries do not form the voting electorate for the MLC polls.
The scheme establishes a strict eligibility cutoff date, covering short-term crop loans outstanding up to September 30, 2025. In an effort to maintain fiscal discipline and reward compliance, the cabinet also finalized an incentive structure. Farmers who have consistently and regularly repaid their seasonal crop loans on time will receive a separate incentive grant of INRÂ 50,000.
Officials from the cooperation department stated that extensive digital infrastructure is being mobilized to prevent discrepancies during the rollout. Data compilation across the state's 36 districts is entering its final stages, and the government has mandated "AgriStack" registration for all potential beneficiaries to ensure direct, transparent bank transfers. Disbursements into verified farmer accounts are projected to be completed by June 30, 2026. Farm Loan Waiver To Be Announced by June 30, Farmers Eligible for Next Cycle: Maharashtra CM Devendra Fadnavis.
This initiative marks the third major institutional agricultural debt-relief program implemented in Maharashtra over the past decade, following similar state-wide interventions launched in 2017 and 2019 to address ongoing agrarian economic distress.
(The above story first appeared on LatestLY on Jun 02, 2026 04:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
