The Maharashtra government has announced a major relief package for farmers by approving a farm loan waiver scheme that will cover agricultural loans up to ₹2 lakh. The decision was taken during a cabinet meeting chaired by Chief Minister Devendra Fadnavis. The scheme has been named the Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana and is expected to benefit around 56 lakh farmers across the state.
According to the government, nearly 65 lakh loan accounts will be covered under the scheme. The state government will spend about ₹36,585 crore to implement the loan waiver. The announcement has been welcomed by many farmers who have been struggling with debt due to rising farming costs, uncertain weather conditions, and fluctuating crop prices.
The government has also announced additional incentives for farmers who regularly repay their loans on time. Officials say the scheme is designed not only to reduce the burden on indebted farmers but also to encourage responsible borrowing and repayment habits.
Under the new scheme, farmers whose total outstanding crop loan is up to ₹2 lakh will receive a complete waiver of their agricultural debt. The waiver will include both the principal amount and the interest accumulated on the loan.
One of the most important features of the scheme is that there is no condition related to the size of land owned by the farmer. Small, marginal, and larger landholders can all qualify if they meet the required conditions.
The government has specified several eligibility requirements that farmers must satisfy to receive the benefit.
First, the crop loan should have been taken between April 1, 2019, and March 31, 2025. Loans taken outside this period will not be covered under the scheme.
Second, the loan must remain outstanding as of September 30, 2025. This means the farmer should still owe money on the loan by that date.
Third, the loan should not have been fully repaid by March 31, 2026. Farmers who have already cleared their eligible loans before this date may not qualify for the waiver.
Finally, the total outstanding amount, including both principal and interest, should not exceed ₹2 lakh.
If all these conditions are fulfilled, the farmer will be eligible for a complete waiver of the outstanding agricultural loan.
The government believes this move will provide significant financial relief to farming families and help them focus on agricultural activities without the pressure of debt.
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The scheme also includes provisions for farmers whose outstanding loans are more than ₹2 lakh.
Such farmers will not be completely excluded from the programme. Instead, they can still receive a loan waiver of up to ₹2 lakh, but they must first pay the amount exceeding the ₹2 lakh limit themselves.
For example, if a farmer has an outstanding agricultural loan of ₹3 lakh, the farmer will first need to deposit ₹1 lakh. Once that payment is made, the remaining ₹2 lakh can be waived by the government under the scheme.
Similarly, if a farmer owes ₹2.5 lakh, they must first repay ₹50,000. After that, the government can waive the remaining ₹2 lakh.
The state government has given farmers enough time to make this payment. Eligible farmers with loans above ₹2 lakh will have until March 31, 2027, to deposit the excess amount and claim the waiver benefit.
Apart from debt relief, the government has introduced another important measure to reward responsible borrowers.
Farmers who have regularly repaid their crop loans on time will receive a special incentive of up to ₹50,000. This incentive aims to encourage financial discipline and recognise farmers who have made efforts to meet their repayment obligations despite challenges.
To qualify for this reward, farmers must have repaid their crop loans on time in at least two of the following financial years:
2022–23
2023–24
2024–25
In addition, they must also repay the crop loan taken during the current financial year within the prescribed period.
Officials believe that this incentive will motivate more farmers to maintain good repayment records while ensuring that honest borrowers are not left out of government support programmes.
However, not everyone will be eligible for the benefits of the scheme.
The Maharashtra government has clearly identified certain categories of people who will not qualify for the loan waiver.
Individuals holding official positions in political parties will not receive the benefit. Government employees are also excluded from the scheme.
People who pay income tax will not be eligible for the waiver either. The government has stated that the scheme is meant primarily for financially vulnerable farmers rather than those with higher incomes.
In addition, officers and employees of cooperative institutions earning a monthly salary of more than ₹25,000 will not be covered under the programme.
The government says these exclusions are intended to ensure that the benefits reach those who need them the most.
The announcement comes at a time when many farmers continue to face financial difficulties due to unpredictable rainfall, rising input costs, and market uncertainties. Agricultural experts believe that reducing debt can help improve farmers’ financial stability and reduce stress in rural areas.
Supporters of the scheme argue that it will provide immediate relief to millions of farming families and strengthen the rural economy. Critics, however, often point out that long-term agricultural reforms, better irrigation facilities, improved market access, and higher farm incomes are also necessary to address the root causes of rural debt.
Nevertheless, the new loan waiver scheme represents one of the largest farmer relief measures announced by the Maharashtra government in recent years.
If implemented successfully, it is expected to benefit more than 56 lakh farmers and cover over 65 lakh loan accounts across the state. Along with the debt waiver, the incentive for timely repayment may also encourage better financial management among farmers in the future.
For now, many farmers across Maharashtra are likely to view the announcement as an important step toward easing their financial burden and providing much-needed support during challenging times.
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