Farmers to Get ₹2 Lakh Relief? Maharashtra’s ₹27,000 Crore Plan Explained

Key Takeaways
 

• The Chief Minister of Maharashtra launched the Punyashlok Ahilyabai Holkar Loan Waiver Scheme. This scheme is likely to help around 51.24 lakh farmers. The state government has released ₹27,000 crore for waiving crop loans up to ₹2,00,000 per farmer.
   
• The state formed a committee headed by MITRA CEO Praveen Pardeshi to make recommendations on the terms of the waiver in October 2025. The committee submitted the report almost 15 days ago. The Cooperation Department is now reviewing it.

More than 51,00,000 farmers in Maharashtra are expected to receive debt relief. The Punyashlok Ahilyabai Holkar Loan Waiver Scheme was announced during the Budget Session. It will waive crop loans up to ₹2,00,000. The state will spend ₹27,000 crore on this scheme. Funds will be arranged through supplementary demands during the Monsoon Session starting June 22 in Mumbai. The cut-off date for loan eligibility is September 30, 2025.

The scheme gives relief to millions of struggling farmers in the short term. The critics argue that this is the third loan waiver scheme for Maharashtra within a decade. Waivers might provide short-term solutions. They don’t resolve the underlying issues that cause losses of crops, low income from farming, and lack of access to irrigation. 

Who Gets What? The Numbers Behind the Scheme
 

51.24 lakh farmers have taken loans worth more than ₹72,000 crore. Out of these, 43.63 lakh are unique farmers. These loans were taken from 53 financial institutions. These include District Central Cooperative Banks (DCCBs) and nationalised banks.

Here is a breakdown of key figures:
 

Those farmers who regularly repay their loans will also get an additional incentive of ₹50,000. It encourages financial discipline among farmers.

Experts’ Opinions: Relief Or Repeated Mistake

The Reserve Bank of India has warned that repeated farm loan waivers weaken credit culture in agriculture. Experts say political pressure often drives such decisions.

A Business Standard editorial said Maharashtra’s new waiver may help fulfil a poll promise. However, repeating this practice may damage the repayment discipline among farmers.

Most of the experts believe that, along with loan waivers, there needs to be some other long-term solution for agrarian distress. It includes better irrigation, crop insurance, setting a fixed minimum support price, etc. The Pardeshi Committee has also been asked to suggest long-term solutions for the same. Its report is under consideration with the Cooperation Department. The proposal may be finalized by the cabinet in May 2026. 

Conclusion

The loan waiver plan for Maharashtra’s farmers will provide immediate relief to thousands of distressed farmers. This plan involves an allocation of ₹27,000 crore. This reflects high political intent behind this scheme.

However, according to the RBI and experts in finance, loan waiver is not the only solution for agrarian distress. Irrigation facilities and other factors are equally important in such a situation. 

FAQs

1. Which farmers are eligible to benefit under Maharashtra’s new loan waiver scheme?

The Maharashtra government plans to waive the crop loans up to ₹2 lakh under the Punyashlok Ahilyabai Holkar Loan Waiver Scheme. Only those farmers who have taken crop loans before September 30, 2025. The proposal is currently under discussion by the government, and information regarding applications will shortly be made available.  

2. Why are recurring loan waivers in farming becoming problematic in India?

According to several experts and the Reserve Bank of India, such loan waivers can result in weak repayment culture among loan takers. Moreover, loan waivers can create additional financial burdens on the governments of the respective states. Most experts argue that other long-term measures are more essential for tackling farmer problems.