Maharashtra cabinet approves Rs 36,585 crore farm loan waiver plan (Img: Internet)
Mumbai: The Maharashtra Cabinet on Tuesday approved a massive farm loan waiver scheme worth Rs 36,585 crore aimed at benefiting nearly 56 lakh farmers across the state. The move is being seen as one of the biggest agricultural relief measures undertaken by the state government in recent years.
The decision was taken during a Cabinet meeting chaired by Chief Minister Devendra Fadnavis. Under the proposed scheme, eligible farmers will receive waiver of crop loans up to Rs 2 lakh.
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However, despite the Cabinet clearance, the state government has not made any formal public announcement regarding the scheme due to the enforcement of the Model Code of Conduct for the ongoing Maharashtra Legislative Council elections.
According to government sources, the scheme has been approved under the “Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme”, a major promise made by the ruling Mahayuti alliance ahead of the Assembly elections.
The scheme is expected to provide major relief to lakhs of farmers struggling with crop loan repayments amid rising input costs and irregular weather conditions.
Apart from waiving loans up to Rs 2 lakh, the government has also decided to provide financial assistance of Rs 50,000 to farmers who have regularly repaid their loans on time.
The Maharashtra government had earlier indicated during the Budget Session that it was considering a large-scale crop loan waiver plan. Initial estimates had projected the financial burden to be between Rs 25,000 crore and Rs 35,000 crore.
However, the final approved outlay has now been fixed at Rs 36,585 crore, making it one of the state’s costliest welfare initiatives focused on the agriculture sector.
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A committee led by senior administrator Praveen Pardeshi had been tasked earlier with preparing eligibility norms and assessing the financial implications of the scheme.
Chief Minister Devendra Fadnavis said the government is legally permitted to clear the proposal and complete administrative procedures, but cannot officially announce the scheme publicly because the Model Code of Conduct remains in force during the Legislative Council elections.
The formal announcement is expected only after the election process concludes. The decision is likely to have a major political and economic impact in Maharashtra, where agrarian distress and farm debt remain significant concerns.
