The Maharashtra state cabinet on Tuesday approved a significant loan waiver for farmers, amounting to Rs 36,585 crore. This decision is set to benefit approximately 55.70 lakh farmers across the state, providing much-needed relief from debt burdens exacerbated by insufficient rainfall and the threat of drought.
Background and Election Promise
The loan waiver fulfills a key promise made by the ruling party during the 2024 assembly election campaign. Chief Minister Devendra Fadnavis stated that while the decision was taken earlier, it could not be announced due to the model code of conduct in place for the legislative council election.
Scheme Details
Under the Punyashlok Ahilyabai Holkar Farmers' Loan Waiver Scheme, the government will deposit the waiver amount directly into farmers' bank accounts before June 20. The scheme provides benefits of up to Rs 2 lakh per farmer and covers more than 65 lakh accounts. Farmers with outstanding crop loans as of September 30, 2025, are eligible for a waiver of up to Rs 2 lakh. Additionally, an incentive fund of Rs 50,000 will be given to farmers who repay their crop loans regularly. For farmers with loans exceeding Rs 2 lakh, the government will pay the first Rs 2 lakh after the farmer clears the amount above Rs 2 lakh.
Political Reactions
The opposition has criticized the state government for delaying the waiver until June. Last year, Shiv Sena (UBT) president Uddhav Thackeray slammed Fadnavis over the timeline, demanding that farmers be made debt-free immediately without further suffering.
