The Maharashtra government's plan to announce a farm loan waiver has encountered a significant obstacle with the enforcement of the model code of conduct for the legislative council elections, which came into effect on Monday. If the election is contested, the code will remain in force until June 25.
Background of the Loan Waiver
Chief Minister Devendra Fadnavis had earlier declared that the farm loan waiver would be announced by June 30. However, sources indicate that after the Pardeshi committee submitted its report to the state on the matter, the cooperation department forwarded a proposal regarding the waiver for cabinet consideration. This proposal can only be taken up once the code of conduct concludes.
Cabinet Sub-Committee Meeting
Speaking to the media, Fadnavis mentioned that a cabinet sub-committee meeting had been convened on the loan waiver, and additional information had been requested. The waiver scheme, named Punyashlok Ahilyadevi Holkar farm waiver scheme, was announced during the state budget in March. It includes a crop loan waiver of up to Rs 2 lakh for farmers with arrears until September 30, 2025.
Beneficiaries and Cost
Between 35 lakh to 40 lakh farmers in Maharashtra are expected to benefit from the waiver, which will cost the exchequer approximately Rs 27,000 crore, according to a panel report submitted to the chief minister last week. Fadnavis stated, "Approximately 28-30 lakh farmers will benefit from the loan waiver. Additionally, 20 lakh farmers who have been repaying their instalments regularly will receive Rs 50,000 as incentive payment."
Political Context
The waiver was announced following agitations by the Prahaar Janshakti Party led by Bachchu Kadu. This led to the formation of the Pardeshi committee in October 2025 to suggest criteria for the waiver and formulate solutions for the state's agrarian distress.
Previous Waivers
This will be the third farm loan waiver in the state. The Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017 was introduced by the BJP-Shiv Sena government led by Fadnavis. In 2019, the MVA government led by Uddhav Thackeray announced the Mahatma Jyotirao Phule Shetkari Karjmukti Yojana.
