Maharashtra Cabinet Approves Farm Debt Relief Package Worth Rs 36,585 Crore
A source in the state government said that under the PAHSKY, loan relief amounting to Rs 36,585 crore will be deposited to 55.72 lakh farmers across the state: Reports
MUMBAI: The Maharashtra Cabinet on Tuesday approved the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna (PAHSKY), a farm loan waiver benefiting nearly 56 lakh farmers. The scheme waives outstanding crop loans up to Rs two lakh per farmer and offers a Rs 50,000 incentive for regular repayers. The decision was taken in a cabinet meeting, chaired by Chief Minister Devendra Fadnavis at Mantralaya.
Meanwhile, the state cooperative department has written a letter to the Election Commission of India (ECI) seeking a permission for publicity of the PAHSKY so that the farmers can easily get fresh farm loans from the banks for Kharif season.
According to the state government, there will be no landholding criterion for eligibility under the scheme, and loan waiver benefits will be extended up to Rs 2 lakh.
A source in the state government said that under the PAHSKY, loan relief amounting to Rs 36,585 crore will be deposited to 55.72 lakh farmers across the state. The waiver will apply to short-term crop loans availed between April 1, 2019, and March 31, 2025. Loans that remained outstanding as of September 30, 2025, and were not repaid by March 31, 2026, will be eligible.
The scheme comprises three components — debt waiver, one-time settlement (OTS), and incentive benefits — which are expected to benefit a majority of farmers in the state, the officials said.
As per the cabinet decision, farmers with outstanding loans of less than Rs 2 lakh will become completely debt-free as their entire eligible loan amount will be waived. Farmers whose outstanding loans exceed Rs 2 lakh will have until March 31, 2027, to repay the amount above the waiver limit. Upon repayment of the balance amount within the stipulated period, the government will deposit Rs 2 lakh into their loan accounts.
In addition to this, under the incentive benefit component, farmers who have regularly repaid their crop loans will be eligible for an incentive of up to Rs 50,000.
However, political office-bearers, government employees, income-tax payees, and officers and employees of cooperative institutions drawing a salary of more than Rs 25,000 per month will not be eligible for benefits under the scheme.
Speaking before the Cabinet meeting, Mr Fadnavis said the Election Commission of India (ECI) had imposed certain conditions while granting permission for the scheme during the Model Code of Conduct for the Legislative Council elections. “We are complying with the ECI’s condition. Therefore, the decision will be taken, but it will not be formally announced at this stage,” the Chief Minister said.
The Maharashtra Cooperative Department on May 20 had sought the ECI’s permission to implement the farm loan waiver scheme amid the Model Code of Conduct (MCC) for Legislative Council elections. In response, the ECI directed that no publicity be undertaken regarding the scheme
A senior official, requesting anonymity, said the state would seek permission to publicise PAHSKY on the grounds that the intended beneficiaries are not voters in the Legislative Council elections and that such publicity would not violate the Model Code. “The state government will request the ECI to allow publicity of the scheme in the interest of farmers, particularly as they are preparing to avail fresh loans for the upcoming Kharif season,” the official said.