Budget relief for farmers: Crop loan waiver up to ₹2 lakh

The loan waiver and repayment incentive will cost the state around ₹35,000 crore in the 2026-27 financial year, Fadnavis told reporters

Mumbai: Chief minister Devendra Fadnavis on Friday announced a crop loan waiver of up to ₹2 lakh for farmers, alongside an incentive of ₹50,000 for those who repay crop loans on time, while presenting the state budget in the legislative assembly. The loan waiver and repayment incentive will cost the state around ₹35,000 crore in the 2026-27 financial year, Fadnavis later told reporters.

CM Devendra Fadnavis, Dy CM Sunetra Pawar and state finance minister Ashish Jaiswal during the budget session at Vidhan Bhavan on Friday (Anshuman Poyrekar/HT Photo)

“The Punyashlok Ahilyadevi Holkar Farmer Debt Waiver Scheme will give a debt waiver of up to ₹2 lakh to eligible farmers who have overdue crop loans as of September 30, 2025. To encourage farmers who take and repay loans regularly, an incentive of up to ₹50,000 will be provided,” Fadnavis said in the assembly.

Provision of free electricity to farmers would cost the government an additional ₹20,000 crore this financial year, up from ₹14,700 crore in 2025-26, the chief minister said, stressing on the Mahayuti government’s resolve to make farmers permanently debt-free.

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There was strong demand for a crop loan waiver scheme from both farmers and opposition parties, as the agricultural sector has been ravaged in the past two years by floods, unseasonal rains and fluctuation in prices. The state’s agricultural growth rate too has slowed to 3.4% this year from 9.1% last year.

When asked about the number of beneficiaries under the loan waiver and repayment incentive scheme, Fadnavis told reporters that the government was collecting data from banks and the process would be completed in one month.

Till now, the government has received data of about 2.8-3 million farmers defaulting on their loans till September 2025, he said.

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“The number will increase as the data collection progresses. Around 2 million farmers who have repaid their farm loans will be eligible for the ₹50,000 incentive,” the chief minister said.

Fadnavis clarified that eligibility criteria for the loan waiver scheme would not be stringent and efforts would be made to benefit maximum farmers. Payments to beneficiary farmers would be routed through farmer identity documents under the Agristack scheme, to their Aadhar-linked bank accounts, Fadnavis said.

To boost natural farming in Maharashtra, the chief minister announced the Maharashtra Natural Farming Mission, with a target to bring 5 lakh hectares under natural farming over the next two years.

The chief minister also warned about potential threats due to EL Nino, which could lead to a drought-like situation in Maharashtra. Accordingly, measures will be taken for the reservation of water, water management through Jalyukta Shivar and water conservation schemes and fodder development, he said.