Maharashtra Farm Loan Waiver: CM Devendra Fadnavis Announces Major Relief, Removes ₹2-Lakh Ceiling To Benefit 56 Lakh Farmers | VIDEO

Mumbai, July 10: In a major relief for distressed farmers, Maharashtra Chief Minister Devendra Fadnavis on Friday announced key changes to the state's newly unveiled Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme, removing the Rs 2-lakh outstanding loan ceiling that had earlier restricted eligibility and extending the cut-off period to include loans overdue up to the 2026-27 financial year.

Replying to a debate on the Opposition-sponsored last week's motion in the Legislative Assembly, Fadnavis said the revised scheme would benefit nearly 56 lakh farmers with financial assistance worth around Rs 36,000 crore, making it one of the state's largest farm debt relief programmes.

Eligibility Expanded

The Chief Minister said the earlier proposal, which limited eligibility to overdue loans of up to Rs 2 lakh, would have excluded thousands of farmers whose dues exceeded the threshold by even a small amount. Removing the ceiling, he said, would ensure that more indebted farmers are brought under the scheme.

Fadnavis also announced that the eligibility period for overdue loans has been extended from the 2025-26 financial year to include loans outstanding till 2026-27, describing it as an unprecedented decision aimed at providing wider relief to the farming community.

Defending the loan waiver, the Chief Minister, who also holds the Finance portfolio, said the objective was not to make farmers dependent on debt relief but to restore their access to institutional credit and prevent them from falling into the hands of private moneylenders.

He rejected the Opposition's criticism that only Rs 12,000-13,000 crore would be disbursed and a large number of farmers would remain outside the scheme, asserting that the government had earmarked assistance of Rs 36,000 crore for about 56 lakh beneficiaries.

Support For Agriculture

Highlighting the state's support to the agriculture sector, Fadnavis said Maharashtra provides an annual electricity subsidy of nearly Rs 25,000 crore to farmers, while agriculture-related subsidy schemes together account for an outlay of around Rs 95,000 crore.

Referring to previous loan waiver programmes, he said the 2019 Mahatma Jyotirao Phule Farm Loan Waiver Scheme had capped eligibility at overdue loans of Rs 2 lakh, resulting in the exclusion of farmers whose dues exceeded the limit by even Re 1. Around 32 lakh farmers benefited under that scheme, he added.

The Chief Minister said Maharashtra remains the only state to have implemented major farm loan waiver programmes in 2017, 2020 and 2026.

Acknowledging concerns over repeated debt waivers, Fadnavis said such measures could discourage timely loan repayment and affect the financial health of cooperative banks. However, the government decided to strike a balance between supporting distressed farmers and safeguarding the banking system.

Further Relief Announced

Responding to demands from ruling alliance legislators to remove the Rs 50,000 repayment-linked condition, Fadnavis said doing so would impose an additional burden of Rs 4,000-5,000 crore on the state exchequer.

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However, he announced that farmers who had benefited under the Mahatma Jyotirao Phule Farm Loan Waiver Scheme would also now be eligible for loan waiver benefits of up to Rs 2 lakh under the revised policy.

Fadnavis said the scheme was finalised after consultations with the banking sector and that the state proposes to spend about Rs 20,000 crore in the first year, Rs 22,000 crore in the second year and Rs 25,000 crore thereafter as part of its broader support for the farm sector.

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