Maharashtra govt links farm loan waiver to previous version of scheme

Kolhapur: Farmers who benefited from the 2019 loan waiver scheme will now be eligible for a waiver of up to Rs 50,000 under the new Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana 2026, stated a govt resolution (GR) issued after Tuesday’s cabinet approval.

The GR, released by the department of cooperation, marketing and textiles, marks the first time a farm loan waiver scheme has been formally linked to its previous version. While the new scheme aims to waive loans worth Rs 36,585 crore covering 56 lakh farmers — making over 65 lakh loan accounts debt-free — the relief for beneficiaries of the 2019 scheme is capped at Rs 50,000.

Data from the department shows that under the 2019 scheme, crop loans and restructured loans disbursed between 2015 and 2019, overdue as of Sept 2019, saw benefits of Rs 20,497 crore extended to 32.4 lakh farmers.

According to the GR, farmers with unpaid short-term crop loans or restructured loans taken between 2019 and 2025, and declared defaulters by March 2026, will be eligible for a waiver of up to Rs 2 lakh, irrespective of landholding size. Similarly, restructured loans — mainly short-term ones converted to medium-term loans — and could not be repaid during the same period will be waived up to Rs 2 lakh.

However, those who availed benefits under the 2019 waiver face a lower cap.

“Those farmers who have availed the benefits of Mahatma Jotirao Phule Shetkari Karjmukti Yojana 2019 and have short-term loan availed between 2019 to 2025 and could not repay by March 2026, having total dues (principal plus interest) up to Rs 50,000, can get loan waiver of upto Rs 50,000,” states the GR.

Govt has also reintroduced a One Time Settlement (OTS) mechanism. Under this, farmers with outstanding loans above Rs 2 lakh must repay the amount exceeding Rs 2 lakh in a single instalment to qualify for a waiver of up to Rs 2 lakh. For restructured mid-term crop loans, farmers must clear dues above Rs 2 lakh by March 31, 2027, to avail the benefit.

“Those farmers who have availed benefit of loan waiver under 2019 scheme, have to pay the loan (principal plus interest) amount above Rs 50,000 one time to get loan waived upto Rs 50,000,” the GR further states.

The GR, however, does not explicitly clarify whether 2019 beneficiaries are eligible for the higher Rs 2 lakh waiver, but it clearly mentions their entitlement to relief up to Rs 50,000.

The 2026 scheme has drawn criticism from opposition politicians and farmer organisations, who say it offers limited and conditional relief.

“The 2019 loan waiver implemented by Maha Vikas Aghadi govt was without so many terms and conditions, unlike the previous 2017 loan waiver and the current 2026 loan waiver. Under the 2019 loan waiver, over 32 lakh farmers had benefited. These farmers are, however, now eligible for just a Rs 50,000 loan waiver. Moreover, the farmers have to settle over and above the amount to get Rs 50,000 waiver. This is not loan waiver scheme, it is loan recovery scheme,” said NCP(SP) MLA Rohit Pawar.

Swabhimani Shetkari Sanghatana president and former MP Raju Shetti added, “Waiving loan upto Rs 50,000 is rubbing salt on the wounds of farmers who are suffering due to increased input cost, and not getting the just price for their produce. As per the OTS scheme, farmers first have to pay, then the govt will waive the loans. Instead, govt shoud waive up to Rs 2 lakh and restructure the remaining loan amount and ask the farmers to pay in equal instalments.”

Ajit Navale, Maharashtra state secretary of Akhil Bharatiya Kisan Sabha, said, “Most of the farmers will get loan waiver of up to Rs 50,000. This scheme is most complex, and at the same time, least beneficial to the farmers who are in deep distress. At the time of assembly election, the promise was made to make 7/12 loan free. It isn’t happening however.”

Hasan Mushrif, minister of medical education and research, told TOI that a discussion was held in the cabinet about willful defaulters — those who deliberately default on loan amounts after being granted waiver once or twice.

“We first thought of declaring the willful defaulters ineligible for loan waiver, as they deliberately default even after the waiver. However, we then decided to let them have some of the loan amount waived. Therefore, we capped the waiver amount to Rs 50,000. I am not aware of how many such willful defaulters there are. The cooperation department may have those figures,” said Mushrif.

Attempts to contact the cooperation, marketing and textiles minister, Babasaheb Patil, for a response, however, did not elicit a reply.