Maharashtra Approves ₹36,585 Crore Farm Loan Waiver, Benefiting 56 Lakh Farmers

The scheme grants a complete waiver of short-term crop loans of up to ₹2 lakh that remained outstanding as of September 30, 2025. The initiative covers more than 65 lakh loan accounts across various banking institutions and is expected to benefit approximately 56 lakh farmers.

The loan waiver fulfils a key electoral commitment made by the government led by Chief Minister Devendra Fadnavis during the 2024 Assembly election campaign. The measure was formally announced in the Maharashtra Budget presented in March 2026, marking one of the state's largest agricultural relief packages in recent years.

According to the approved framework, eligible farmers will receive the benefits after the completion of necessary administrative procedures. The government expects the funds to be credited to beneficiaries' accounts by June 20. However, the public rollout of the scheme has been delayed due to the ongoing Legislative Council elections, which have temporarily slowed the official implementation process.

Supporters of the initiative have welcomed the decision, describing it as a significant boost for rural communities and the agricultural economy. They argue that the waiver will provide immediate financial relief to farmers struggling with debt burdens and improve economic activity across rural Maharashtra.

At the same time, the programme has attracted criticism from several quarters. Critics have questioned the fairness of extending benefits primarily to loan defaulters while farmers who repaid their loans on time receive no comparable relief. Concerns have also been raised about the long-term fiscal implications of the scheme, particularly as Maharashtra's total debt is projected to exceed ₹11 lakh crore by 2027.

The approval of the ₹36,585 crore loan waiver represents one of the most significant agricultural policy decisions taken by the Maharashtra government in recent years. While it promises immediate relief for millions of farmers, the scheme is also expected to remain at the centre of debate over fiscal sustainability, equitable distribution of benefits, and the future direction of agricultural support policies in the state.