- Maharashtra removes ₹2 lakh dues cap under revised farm loan waiver scheme.
- Loan waiver eligibility extended to overdue loans till 2026-27.
- Around 56 lakh farmers to benefit with assistance worth ₹36,000 crore.
- Government says move will help distressed farmers regain access to institutional credit.
GG News Bureau
Mumbai, 10th July: Maharashtra Chief Minister Devendra Fadnavis on Friday announced major changes to the state’s Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme, removing the existing ₹2 lakh ceiling on overdue loans and extending the eligibility period to include dues up to the 2026-27 financial year.
Replying to a debate on the opposition-sponsored ‘last week motion’ in the Legislative Assembly, Fadnavis said the revised scheme would benefit nearly 56 lakh farmers, compared to the earlier framework that excluded many farmers whose outstanding dues exceeded ₹2 lakh by even a small amount.
The Chief Minister said the revised scheme would provide assistance worth ₹36,000 crore, enabling distressed farmers to regain access to institutional credit. He maintained that while loan waivers do not make farmers prosperous, they are essential to prevent indebted cultivators from falling into the hands of private moneylenders.
Fadnavis said the BJP-led government decided to introduce the enhanced waiver despite there being no elections until 2029, as farmers continue to face financial difficulties. He added that Maharashtra already spends around ₹25,000 crore annually on electricity subsidies for farmers, while agricultural subsidy schemes have a combined outlay of nearly ₹95,000 crore.
Defending the scheme against criticism, the Chief Minister rejected claims that only ₹12,000-13,000 crore would be disbursed or that millions of farmers would be excluded. He said the revised package was a “historic” initiative that would extend support to a much larger section of the farming community.
He noted that the 2019 Mahatma Jyotirao Phule Farm Loan Waiver Scheme had limited eligibility to overdue loans of up to ₹2 lakh, resulting in the exclusion of farmers whose dues marginally exceeded the limit. Around 32 lakh farmers benefited under that scheme.
Fadnavis acknowledged that repeated loan waivers could weaken repayment discipline and affect the financial health of cooperative banks. However, he said the government had sought to strike a balance between supporting farmers and protecting the banking system.
Responding to demands from ruling alliance legislators to remove the ₹50,000 repayment-related condition, the Chief Minister said doing so would impose an additional burden of ₹4,000-5,000 crore on the state exchequer. He, however, announced that beneficiaries of the Mahatma Phule loan waiver scheme would also receive waiver benefits of up to ₹2 lakh under the revised policy.
The Chief Minister said representatives of the banking sector were consulted before finalising the scheme. The state plans to spend ₹20,000 crore in the first year, ₹22,000 crore in the second year, and ₹25,000 crore thereafter as part of its broader support to the agriculture sector.
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