Maharashtra government eyes bigger farm loan waiver, 5.75 lakh more farmers could benefit

The development comes two days after The Indian Express reported that the state government’s own Cabinet note had acknowledged that the scheme’s eligibility restrictions would reduce the eventual financial burden on the state by limiting the number of beneficiaries. The note had lent weight to Opposition allegations that a large number of distressed farmers could be left out of the scheme.

A day after the report, Agriculture Minister Dattatraya Bharne had indicated that the government was open to revisiting some of the eligibility conditions and said the issue could be discussed in the Cabinet to ensure that more farmers benefited from the scheme.

“The proposal was discussed in the Cabinet meeting and the Chief Minister asked the Agriculture Department to work out the details. Around 5.75 lakh farmers who were left out of the previous loan waiver schemes are proposed to be included. The additional financial implication is estimated at around Rs 1,400 crore,” a senior official said.

Issue raised by Shiv Sena

According to sources, the issue was raised by a Shiv Sena minister during the meeting. The proposal seeks to address complaints that several farmers were excluded from the 2017 and 2019 farm loan waiver schemes despite being eligible.

The discussion assumes significance as the state government faces mounting criticism from Opposition parties and farmer leaders over the eligibility conditions attached to the newly announced loan waiver scheme.

Swabhimani Shetkari Sanghatana president Raju Shetti said the government should extend the waiver to all farmers. “Why has the government imposed so many terms and conditions?” he asked.

Congress state president Harshvardhan Sapkal has also criticised the eligibility criteria, claiming that a large number of distressed farmers would remain outside the scheme’s ambit.

On June 2, the state Cabinet approved the Rs 36,585-crore Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana, which is expected to benefit around 55.72 lakh farmers.

Under the scheme, crop loans availed between April 1, 2019, and March 31, 2025, are eligible for consideration. Farmers with outstanding crop loan arrears as of September 30, 2025, can receive a waiver of up to Rs 2 lakh.

Farmers who have regularly repaid their loans will be eligible for an incentive of up to Rs 50,000. Farmers with outstanding crop loans exceeding Rs 2 lakh will have to repay the amount above the threshold, following which the government will waive the remaining amount up to Rs 2 lakh.

There is no landholding ceiling under the scheme. The scheme also extends benefits to certain farmers who had availed assistance under the Mahatma Jyotirao Phule Shetkari Karjmukti Yojana and subsequently accumulated arrears, as well as those with restructured loans.

However, salaried individuals earning more than Rs 25,000 a month, income-tax payers, pensioners receiving more than Rs 25,000 a month, current and former elected representatives, and government employees are not eligible for the benefits.