Mumbai, June 2 (IANS) Maharashtra Chief Minister, Devendra Fadnavis, on Tuesday said that the decision on the state’s farmer loan waiver has reached its final stages but the official announcement is being held back due to directives from the Election Commission.

Speaking to reporters after the weekly Cabinet meeting, CM Fadnavis clarified that the formal announcement will be made after the elections to the 17 Maharashtra Legislative Council elections slated for June 18 and counting on June 22.

CM Fadnavis, who was accompanied by ministers Girish Mahajan and Shivendraraje Bhosale, confirmed that the proposal has been brought before the state Cabinet.

While the Election Commission has granted its approval, it has done so with a specific caveat.

“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,” he said.

This development follows a statement made two days ago by Agriculture Minister Dattatray Bharne who had indicated that a definitive decision on the loan waiver would be reached within 10 days. The Chief Minister confirmed that the formal decision on the crop loan waiver is being ratified in today’s state Cabinet meeting.

Various farmer unions and leaders across the state have been relentlessly demanding a complete loan waiver. Debt distress has led to a troubling rise in farmer suicides in the state. Due to the lack of guaranteed Minimum Support Prices (MSP) for agricultural produce, farmers are frequently pushed into cycles of heavy debt. Unable to repay these loans, many are burdened by private moneylenders and driven to take extreme steps, they said.

The Punyashlok Ahilyabai Holkar Debt Waiver Scheme proposes to provide the benefit of a loan waiver up to a limit of Rs 200,000 to several lakh of farmers in the state.

Fulfilling the promise given by Mahayuti leaders to appease farmers during the 2024 Assembly elections, CM Fadnavis announced the Punyashlok Ahilyabai Holkar Farmers’ Debt Waiver Scheme during the budget session of the legislature.

Under this scheme, it was announced that farmers whose crop loans are overdue as of September 30, 2025, will be given a loan waiver up to a limit of Rs 200,000. Additionally, an incentive subsidy of Rs 50,000 was announced for farmers who regularly repay their crop loans.

According to this, the government will pay the entire loan for farmers who have overdue debts up to Rs 200,000. For farmers with loans exceeding Rs 200,000, the government will pay the Rs 200,000 waiver only after the farmer clears the amount above the Rs 200,000 threshold. An incentive subsidy of Rs 50,000 will be given to those who repay their loans regularly.

To suggest measures for providing permanent relief to farmers who are constantly trapped in debt, the government had constituted a committee. This committee, chaired by Pravin Pardeshi, Chief Executive Officer of the MITRA institution and Chief Economic Advisor to the Chief Minister, had recently submitted its report to the Chief Minister.

Based on this report, the Cooperation Department has prepared a proposal regarding the loan waiver. It is said that the criteria of the previous Mahatma Phule Loan Freedom Scheme have been proposed for the new Punyashlok Ahilyabai Holkar Debt Waiver Scheme.

Against the backdrop of the Meteorological Department’s warning of deficient rainfall and a potential drought in the state this year, the Cooperation Department has submitted the loan waiver proposal to provide relief to farmers, said the department sources.

–IANS

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