Maharashtra Budget 2026-27 Unveils Rs 2 Lakh Farm Loan Waiver

Maharashtra Chief Minister Devendra Fadnavis presented the state's budget for 2026-27 on March 6, 2026, in the legislative assembly, announcing a major farm loan waiver scheme to provide relief to distressed farmers amid ongoing economic pressures in the agricultural sector.

The Punyashlok Ahilyadevi Holkar Shetkari Karjamafi Yojana will waive crop loans up to Rs 2 lakh for eligible farmers with overdue amounts as of September 30, 2025. Officials estimate the scheme will benefit around 28 to 50 lakh farmers, with banks providing initial data on approximately 28.3 lakh defaulters. The waiver, fulfilling a pre-election promise by the ruling Mahayuti alliance from 2024, is projected to cost the state exchequer about Rs 35,000 crore. To encourage timely repayments, the government will offer incentives of up to Rs 50,000 to nearly 20 lakh farmers who have maintained regular payments. Fadnavis stated, "Our effort is to extend the benefits to as many farmers as possible," emphasizing no landholding limits and the use of digital tools like AgriStack and Aadhaar-linked accounts for verification. Implementation is expected to take one and a half months, focusing on genuine beneficiaries...