MUMBAI: In a major relief measure fulfilling a key pre-poll promise of the Mahayuti alliance, Maharashtra Chief Minister Devendra Fadnavis on Friday announced the Punyashlok Ahilyabai Holkar Shetkari Karjmafi Yojana (Punyashlok Ahilyabai Holkar Farmers’ Loan Waiver Scheme) as part of the state's 2026-27 budget.

The scheme provides for a full waiver of crop loans up to Rs 2 lakh for eligible farmers with outstanding arrears as of September 30, 2025. To encourage timely repayments and strengthen rural banking discipline, farmers who have been regularly repaying their crop loans will receive an incentive of Rs 50,000.

Fadnavis, who presented the Rs 7.69 lakh crore budget in the Legislative Assembly today, said the initiative is expected to cost the state exchequer around Rs 35,000 crore. This includes approximately Rs 20,000 crore for the waiver component (targeting defaulters) and Rs 15,000 crore for incentives to regular payers. A committee headed by MITRA CEO Praveen Pardesi is currently verifying bank data using Agristack, Aadhaar-linked accounts, and land records to finalize the exact beneficiary numbers and total outlay.

Preliminary estimates indicate that 28-30 lakh farmers with defaulter status could benefit from the waiver, while around 20 lakh regular repayers may qualify for the Rs 50,000 incentive. Overall, the scheme could reach nearly 50 lakh farmers across Maharashtra. There is no specified landholding ceiling, ensuring broader coverage for ordinary small and marginal farmers.

The announcement comes amid persistent agrarian challenges, including crop failures, high input costs, and debt pressures. This marks the third major farm loan waiver in the state over the past decade under the current administration, following earlier schemes. However, critics have pointed out that benefits from the 2017 waiver remain pending for about 6 lakh farmers, raising questions about implementation and fiscal sustainability as the state's debt is projected to exceed Rs 11 lakh crore.

Fadnavis emphasized that the scheme aims to provide timely relief ahead of the Kharif season, promote responsible borrowing, and support sustainable agriculture. Detailed guidelines on eligibility, application process, verification, and disbursement timelines are expected to be issued soon by the Maharashtra Agriculture Department and cooperative banks.

Farmer organizations have welcomed the move as a step toward alleviating rural distress, though opposition voices have questioned the timing and long-term impact on state finances. Farmers are advised to stay updated through official channels for further announcements on how to apply once the scheme rolls out.