02 June,2026 05:45 PM IST | Mumbai | mid-day online correspondent
Maharashtra CM Devendra Fadnavis (centre) speaks to the media after the cabinet meeting in Mumbai on Tuesday. PIC/X
Maharashtra Chief Minister (CM) Devendra Fadnavis on Tuesday said that the state government's decision on a crop loan waiver for farmers has reached its final stage, but the formal announcement has been deferred due to Election Commission guidelines ahead of the legislative council elections.
Speaking to reporters after the weekly cabinet meeting, Fadnavis said the proposal had been placed before the state cabinet and that the official announcement would be made only after the Maharashtra Legislative Council elections scheduled for June 18 and the counting of votes on June 22, news agency IANS reported.
"The government is permitted to pass the resolution and initiate administrative processing, but it is legally barred from making a formal public declaration at this stage. Therefore, the official announcement regarding the farmer loan waiver will only be made after the conclusion of the Legislative Council elections," Fadnavis said.
The CM, accompanied by ministers Girish Mahajan and Shivendraraje Bhosale, said the Election Commission had granted approval for the process, subject to restrictions on public announcements during the election period.
His remarks came two days after Agriculture Minister Dattatray Bharne said that a final decision on the loan waiver would be taken within 10 days. Fadnavis confirmed that the proposal was being ratified during Tuesday's cabinet meeting.
The proposed Punyashlok Ahilyabai Holkar Debt Waiver Scheme aims to provide loan waiver benefits of up to Rs 2 lakh to several lakh farmers across the state.
During the Budget Session of the state legislature, the Mahayuti government had announced the scheme as part of its commitment to farmers. Under the proposal, farmers with crop loans overdue as of September 30, 2025, will be eligible for a waiver of up to Rs 2 lakh.
The government has also proposed an incentive subsidy of Rs 50,000 for farmers who regularly repay their crop loans.
Under the scheme, farmers with overdue loans of up to Rs 2 lakh will receive a complete waiver. Those with loans exceeding Rs 2 lakh will receive the waiver amount after clearing the outstanding balance above the Rs 2 lakh threshold.
To suggest long-term measures for addressing farm debt, the state government had constituted a committee headed by Pravin Pardeshi, chief executive officer of MITRA and chief economic adviser to the CM. The committee recently submitted its report to the government.
Based on the report, the cooperation department prepared the loan waiver proposal. Officials said the eligibility criteria of the earlier Mahatma Phule Loan Waiver Scheme have been proposed for inclusion in the new scheme.
According to department sources, the proposal has gained urgency amid warnings from the India Meteorological Department about deficient rainfall and the possibility of drought conditions in parts of Maharashtra this year.
(With IANS inputs)
