Farmers with crop loan dues of up to Rs 2 lakh will receive complete debt relief, while those with higher dues can avail benefits through the settlement mechanism. The government has also announced incentives of up to Rs 50,000 for eligible farmers with a good repayment record.
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The Maharashtra cabinet on Tuesday approved a scheme to provide farm loan waiver of up to Rs 2 lakh, fulfilling a major pre-poll promise of the ruling Mahayuti alliance, and also introduced incentive benefits for cultivators who have repaid their loans on time.The scheme, ‘Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana’, is expected to benefit around 56 lakh farmers, sources said.The decision to approve the scheme was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis, an official statement said.Loan waiver and settlement provisionsThe scheme has three components -- loan waiver, one-time settlement (OTS) and incentive benefits -- and there will be no landholding criterion for eligibility, it said.Under the waiver component, farmers whose total outstanding short-term crop loans, including principal and interest, are up to Rs 2 lakh will be eligible for a complete debt relief. The loans must have been disbursed between April 1, 2019, and March 31, 2025, remained overdue as of September 30, 2025, and unpaid till March 31, 2026.The farmers whose dues exceed Rs 2 lakh will be covered under the OTS component. Such borrowers will have to clear the amount above Rs 2 lakh, after which they will become eligible for a waiver of Rs 2 lakh. They have been given time until March 31, 2027, to deposit their share of the outstanding amount.The cabinet hailed the waiver programme as a major relief measure for farmers. Ministers applauded the move during the meeting and termed it a historic decision benefiting lakhs of cultivators across the state.Office-bearers of political parties, government employees, income-tax payers and officers and staffers of cooperative institutions drawing salaries exceeding Rs 25,000 per month have been excluded from the scheme’s ambit.Incentives for prompt repaymentUnder the incentive benefit component, farmers who have repaid crop loans within the prescribed period in at least two of the three financial years from 2022-23 to 2024-25 will receive an incentive grant of up to Rs 50,000.Eligible beneficiaries who have taken out crop loans in the current financial year will also have to repay those loans on time.In another provision, farmers with overdue amounts exceeding Rs 50,000 can avail of a grant of Rs 50,000 after paying the balance amount above that threshold, enabling them to become debt-free. They, too, have been given time until March 31, 2027, to make the required payment.The beneficiaries of the Mahatma Jyotirao Phule Shetkari Karjamukti Yojana, 2019 (another farm credit waiver plan), who subsequently defaulted on fresh crop loans, would be eligible for loan relief of up to Rs 50,000, subject to certain conditions.Implementation and eligibility frameworkImplementation of the latest farm loan waiver scheme will be monitored by a high-level committee headed by the Chief Secretary. A separate panel headed by the Additional Chief Secretary (Finance) will negotiate with nationalised, private and regional rural banks regarding settlement of non-performing agricultural loans and determination of concessions to be extended by lenders.The scheme will cover loans availed from nationalised banks, private banks, regional rural banks, district central cooperative banks and primary agricultural credit societies. Aadhaar authentication and registration on the AgriStack platform will be mandatory for beneficiaries, while a dedicated digital portal will be developed for implementation of the scheme.Opposition seeks broader reliefThe Opposition Congress said the loan waiver should not remain merely an announcement as the past implementation of such schemes created doubts about the government’s commitment towards tillers.Around 80 lakh women were found ineligible months after the roll-out of the Mukhyamantri Majhi Ladki Bahin Yojana, and the government’s assertion that 56 lakh farmers would benefit from loan waiver should be viewed cautiously, the party said.The government should provide a blanket debt relief to all farmers, it demanded.Shiv Sena (UBT) MLA Aaditya Thackeray stated that a farm loan waiver scheme was implemented without any fanfare by then-Chief Minister Uddhav Thackeray, who headed the Maha Vikas Aghadi government from November 2019 to June 2022.“The assurances to give a farm loan waiver after that were hollow. The expectation is that this money will reach the accounts of farmers and there is no need to put banners regarding this,” said Aaditya Thackeray, taking a swipe at the BJP-led Mahayuti government.Nationalist Congress Party (SP) spokesperson Clyde Crasto also demanded a blanket loan waiver for farmers.Farmer groups seek higher waiver capFarmer leader Raju Shetti, who heads the Swabhimani Shetkari Paksh, said the government had promised a full loan waiver, but has capped the amount only to Rs 2 lakh.He said the timeline set for loan waiver is September 2025, but the state faced unseasonal rains even after that. Even the mango farmers in Konkan have faced losses and they should also get relief.Shiv Sena MLC Bacchu Kadu thanked CM Fadnavis and Deputy Chief Minister Eknath Shinde for waiving the farm loans, but added that the cap of Rs 2 lakh should have been enhanced and those who have paid loan instalments regularly should be given an incentive of Rs 1 lakh.Published on June 2, 2026
