In a move benefiting farmers, Maharashtra Chief Minister Devendra Fadnavis revealed modifications to a crop loan waiver scheme to aid distressed farmers and deter reliance on private moneylenders. The revised scheme includes a complete farm loan waiver, a one-time settlement option, and bonuses for timely debt clearance. Fadnavis clarified that the decision was driven by farming distress, not electoral motives, despite criticisms on the timing.
The updated Punyashlok Ahilya Holkar Loan Waiver Scheme expands the safety net beyond the previous scheme’s limitations. Unlike the previous cap of Rs 2 lakh, the new scheme offers relief to farmers with outstanding balances exceeding this amount, provided they settle the excess. The scheme also extends the cutoff date for eligible defaults, now covering overdue crop loans up to the 2026-27 financial year.
The state government refuted claims that the scheme would only benefit a few farmers, asserting that over 56 lakh farmers stand to gain Rs 36,585 crore through this initiative. Additionally, the government highlighted its ongoing support, including electricity waivers and substantial budgetary allocations for agricultural departments. To ensure fiscal discipline and banking system health, exclusion criteria have been set, omitting farmers who recently benefited from consecutive loan waivers.
Responding to demands to remove caps for specific categories, the government agreed to expand limits, benefiting an additional two lakh farmers. This adjustment, while adding to the fiscal burden, aims to bring more farmers under the security blanket of the scheme. Fadnavis emphasized the importance of loan waivers in empowering farmers to access formal credit and avoid private moneylenders, safeguarding both farmers and the banking system.
