'Tough Harvest Ahead': Maharashtra Committee Faces ₹2.25 Lakh Crore Crop Loan Burden, Begins Work In Waiver Criteria

Mandated with the task of finalising the farm loan waiver criteria and long-term solutions freeing farmers from the debt trap, the state-appointed committee has a tough task to handle the issue of over Rs2.25 lakh crore crop loans disbursed for the current season.

The eight-member high-level committee, headed by Chief Financial Advisor to the CM, Praveen Singh Pardeshi, held its first meeting, which was attended by departmental heads of revenue, agriculture, finance and cooperation, along with representatives from the Bank of Maharashtra and the Maharashtra State Cooperative Bank.

According to informed sources, the current NPA against crop loans stands at 20 per cent, which is likely to rise due to heavy rains causing floods and damaging standing crops. Of the total crop loans, 60 per cent have been disbursed by Public Sector Banks and the remaining 40 per cent by District Cooperative Banks.

The state may have to waive off loans worth Rs25,000–30,000 crore if it goes ahead with the pre-poll promise made before the November 2024 Assembly elections.

By March 2025, the total agriculture debt in Maharashtra stood at Rs1,77,200 crore, with crop loans of Rs67,058 crore. For FY 2025-26, crop loans amount to Rs1.10 lakh crore and term loans Rs95,160 crore, as per the State Level Bankers Committee report.