Maharashtra cabinet approves Rs 36,000 crore loan waiver for farmers

Mumbai: The state cabinet on Tuesday approved a loan waiver for farmers amounting to Rs 36,585 crore. The move will benefit 55.70 lakh farmers.

The cabinet took the decision to provide relief to farmers burdened with debt in the wake of insufficient rain, and a possible drought, in the state. The waiver was a promise made to voters during the assembly election campaign of 2024.

The cabinet took the decision to deposit the waiver sum in the bank accounts of farmers before June 20 under the Punyashlok Ahilyabai Holkar Framers’ Loan Waiver Scheme, which provides benefits up to Rs 2 lakh.

Chief minister Devendra Fadnavis said that while a decision was taken in the cabinet, it was not announced due to the poll code of conduct, which was in place for the legislative council election.

The scheme will cover more than 65 lakh accounts.

During the 2024 assembly election, Fadnavis had announced the Punyashwok Ahilyabai Holkar Farmers’ Loan Waiver Scheme and it was approved in the budget session of the state legislature.

“Through this scheme, it was announced that farmers whose crop loans are outstanding as of September 30, 2025, will be given a loan waiver of up to Rs 2 lakh and an incentive fund of Rs 50,000 will be given to farmers who repay their crop loans regularly. Now the govt will pay the entire loan of farmers with outstanding loans up to Rs 2 lakh. The govt will pay the loan of Rs 2 lakh only after farmers with loans of more than Rs 2 lakh have paid their loans above Rs 2 lakh. While those who repay their loans regularly will be given an incentive grant of Rs 50,000,” an official said.

The opposition had slammed the state govt for delaying the loan till June. Last year, Shiv Sena (UBT) president Uddhav Thackeray had criticised Fadnavis over his announcement that the state govt would make a final decision on the farm loan waiver before June 30 this year. Thackeray said farmers must be made “debt-free immediately without making them suffer".