Maharashtra cabinet clears farm loan waiver, 56 lakh farmers to benefit

The Maharashtra cabinet has approved a farm loan waiver scheme covering agricultural loans of up to Rs 2 lakh, news agency PTI reported.

The decision taken on Tuesday at a cabinet meeting chaired by Chief Minister Devendra Fadnavis ahead of the monsoon season, is expected to benefit around 56 lakh farmers.

Farm loan waiver was one of the major promises made by the BJP-led Mahayuti alliance before the 2024 assembly elections. But an official announcement is unlikely at present as the Model Code of Conduct is in force due to the Legislative Council elections, sources said.

The scheme will cover more than 65 lakh accounts, and loans worth Rs 36,585 crore of nearly 56 lakh farmers are expected to be waived, the sources said.

The cabinet also decided to provide an incentive of up to Rs 50,000 to farmers who have regularly repaid their crop loans, they said.