The Maharashtra cabinet, led by Chief Minister Devendra Fadnavis, has given the green light to the Punyashlok Ahilyadevi Holkar farm loan waiver scheme worth Rs 36,585 crore. This initiative is set to benefit around 55.72 lakh farmers in the state. The official announcement of the scheme has been postponed in adherence to the Election Commission’s guidelines due to the upcoming elections for 17 state council seats on June 18.
The scheme, proposed by the Chief Minister during the presentation of the annual budget for 2026–27, aims to fulfill a promise made during the 2024 assembly elections. It will cover crop loans taken between April 1, 2019, and March 31, 2025. Eligible farmers with outstanding short-term crop loans during this period, unpaid up to September 30, 2025, will receive relief of up to Rs 2 lakh per individual farmer, regardless of landholding size.
Medium-term restructured crop loans resulting from short-term loans with defaults by September 30, 2025, are also included in the Rs 2 lakh write-off scheme. Additionally, a One-Time Settlement (OTS) protocol has been established for farmers with outstanding amounts exceeding Rs 2 lakh. Those who have repaid loans in two out of three financial years before June 30 will receive an incentive bonus of up to Rs 50,000.
Farmers who have benefited from the previous Mahatma Jyotirao Phule farm loan waiver scheme and have arrears up to Rs 50,000 will also be eligible under the new scheme. However, certain categories such as salaried individuals with a monthly income over Rs 25,000, income tax payers, retired individuals with income exceeding Rs 25,000, elected representatives, and government employees are not eligible.
A committee led by the Chief Secretary, along with other officials, will oversee the implementation of the scheme, which has been approved by the cabinet.
