Maharashtra Approves ₹2 Lakh Farm Loan Waiver for 56 Lakh Farmers, June 04

Maharashtra’s cabinet approved the Punyashlok Ahilyabai Holkar Shetkari Karzamukti scheme on June 3, 2026, to waive up to 200,000 rupees in farm debt for 56 lakh farmers. The scheme covers 65 lakh loan accounts and will cost the state 36,585 crore rupees. This is the government’s response to mounting debt among farmers who face rising production costs and unpredictable harvests.

Who Gets Debt Relief Under the New Scheme

Farmers who borrowed between April 1, 2019 and March 31, 2025 for crop loans will qualify if their debt remained unpaid as of September 30, 2025 and was not cleared by March 31, 2026. The scheme covers all farmers regardless of land size. Farmers with debt above 200,000 rupees can opt for a one-time settlement, paying the excess amount to banks and receiving a 200,000 rupee waiver on the remainder. They have until March 31, 2027 to settle the extra amount.

Incentives for Farmers Who Pay on Time

The government will give 50,000 rupees to farmers who paid crop loans on time during at least two of the three financial years from 2022-23 to 2024-25. These farmers must also pay their current-year crop loan on schedule to qualify. This incentive aims to encourage financial discipline among borrowers.

Who Is Excluded From the Waiver

Political party officials, government employees, income tax payers, and cooperative society staff earning more than 25,000 rupees monthly cannot access the scheme. Farmers who received debt relief under the 2019 Mahatma Jyotiba Phule scheme will get only 50,000 rupees, not the full 200,000 rupee waiver. Farmers with non-crop loans for wells, pipelines, or livestock purchases are also excluded.

Implementation Requirements

Farmers must register with the Agri Stack system and hold an Aadhaar card to receive benefits. The scheme applies only to short-term crop loans and restructured accounts. The government delayed formal announcement due to election code restrictions ahead of June 18 state assembly polls, though cabinet approval was already granted.

Final Thoughts

Maharashtra’s 36,585 crore rupee farm loan waiver targets 56 lakh farmers but excludes many with older debts or non-crop loans. Opposition parties argue over 50% of farmers remain ineligible due to eligibility rules and loan type restrictions.

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