Maharashtra cabinet approves farm loan waiver for 56 lakh farmers

The Maharashtra cabinet has approved a farm loan waiver scheme covering agricultural loans of up to Rs 2 lakh. Around 56 lakh farmers are expected to benefit, while regular crop loan borrowers will receive incentives of up to Rs 50,000

Mumbai: The Maharashtra cabinet on Tuesday approved a farm loan waiver scheme covering agricultural loans of up to Rs 2 lakh, a decision expected to benefit around 56 lakh farmers, sources said.

The decision was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis ahead of the monsoon season, they said.

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A farm loan waiver was one of the major promises made by the BJP-led Mahayuti alliance before the 2024 Assembly elections. However, an official announcement is unlikely at present as the Model Code of Conduct is in force due to the Legislative Council elections, sources said.

The scheme will cover more than 65 lakh accounts, and loans worth Rs 36,585 crore belonging to nearly 56 lakh farmers are expected to be waived, the sources said.

The cabinet also decided to provide an incentive of up to Rs 50,000 to farmers who have regularly repaid their crop loans, they said.