Maharashtra Clears Rs 36,585-Crore Farm Debt Relief Package for 56 Lakh Farmers

The Maharashtra cabinet has approved a Rs 36,585-crore farm debt relief package that is expected to benefit nearly 56 lakh farmers , delivering on a key promise made by the ruling Mahayuti alliance ahead of the 2024 Assembly elections. The scheme, named the Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana , will waive eligible crop loans of up to Rs 2 lakh per farmer and provide incentives for borrowers who have repaid loans on time.

The package will cover more than 65 lakh loan accounts across nationalised, private, regional rural and cooperative banks. Farmers with outstanding short-term crop loans of up to Rs 2 lakh, disbursed between April 1, 2019 and March 31, 2025, and remaining unpaid as of March 31, 2026, will qualify for complete debt relief.

The scheme also includes a one-time settlement (OTS) mechanism for farmers whose dues exceed Rs 2 lakh. Such borrowers can avail themselves of the waiver after clearing the amount above the prescribed limit by March 31, 2027. In addition, farmers who repaid crop loans on schedule in at least two of the last three financial years will receive an incentive of up to Rs 50,000 .

A significant detail highlighted in other reports is that the state government cannot formally announce or implement the scheme until the Model Code of Conduct for the June 18 Legislative Council elections is lifted. The State Election Commission reportedly advised that while the cabinet could approve the proposal, public rollout must wait until after the polls.

The loan waiver follows recommendations submitted by a committee headed by former bureaucrat Praveen Pardeshi , which was constituted after sustained farmer protests. The scheme is also the state's third major farm loan waiver in a decade , following programmes launched in 2017 and 2019.

While farmer organisations have welcomed the relief, several groups and opposition parties have argued that the Rs 2 lakh cap is inadequate and have demanded a broader waiver covering all distressed cultivators. They have also urged the government to ensure that funds reach banks quickly so eligible farmers can access fresh credit for the upcoming Kharif season.