Nagpur: In a major relief measure for the farming community, the Maharashtra Cabinet on Tuesday approved a comprehensive farm loan waiver scheme expected to benefit nearly 56 lakh farmers across the state. However, the government has deferred the formal announcement and implementation of the scheme due to the Model Code of Conduct currently in force for the Legislative Council (MLC) elections.
Under the approved proposal, eligible farmers will receive a waiver on outstanding crop loans of up to Rs 2 lakh. In addition, farmers who have regularly repaid their loans and are not classified as defaulters will be given an incentive of Rs 50,000 as a reward for maintaining financial discipline.
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The decision fulfills an assurance earlier given by Chief Minister Devendra Fadnavis, who had indicated that the government would take a call on farm loan relief in June 2026. While the Cabinet has now formally cleared the proposal, its public announcement has been put on hold until the election process concludes.
According to government estimates, around 65 lakh farmer bank accounts have availed crop loans amounting to nearly Rs 36,585 crore. Of these, approximately 56 lakh farmers qualify for benefits under the proposed loan waiver scheme.
Sources in the administration said the State Government had sought guidance from the State Election Commission regarding the timing of the announcement. The Commission reportedly advised that while the Cabinet was free to take a policy decision, it could neither publicly announce nor implement the scheme during the period in which the election code of conduct remains operational.
A senior source familiar with the development said that the Election Commission’s opinion was aimed at ensuring a level playing field during the ongoing MLC elections. As a result, the government has decided to wait until the code of conduct is lifted before making the scheme official and initiating implementation.
The Cabinet’s decision has been welcomed by farmer organizations, although they have stressed that speedy execution is now crucial.
Ajit Nawale, Secretary of the All India Kisan Sabha, described the Cabinet approval as a positive step but cautioned that delays in implementation could undermine its intended benefits.
He pointed out that June is the final month for repayment of crop loans and warned that farmers who fail to clear their dues before the deadline risk being classified as defaulters, making them ineligible for fresh agricultural credit required for the upcoming Kharif season.
Nawale urged the State Government to ensure that the waived loan amounts are credited to banks by the end of June so that farmers can access new loans without disruption. He emphasized that timely implementation would determine whether the scheme genuinely helps cultivators prepare for the Kharif sowing season.
The loan waiver is expected to provide significant financial relief to lakhs of distressed farmers, particularly those grappling with rising cultivation costs, erratic weather conditions and mounting debt burdens. Farmers across Maharashtra are now awaiting the lifting of the election code of conduct for the government’s formal announcement and rollout of the scheme.
