Loan waiver: Maharashtra may set ₹1 lakh limit for each farmer

Mumbai city news: Devendra Fadnavis led-government says aim is to extend help to a majority of farmers in debt; to release ₹10,000 in the next few days

The state may fix Rs75,000-Rs1 lakh as the limit up to which a farmer’s loan will be waived.

The Shiv Sena put up a hoarding claiming for getting loan waiver for farmers near BJP office in Mumbai on Monday. (Bhushan Koyande/HT)

The government on Sunday announced a complete loan waiver for farmers, irrespective of their landholding. According to sources, the estimated burden of loan waiver is expected to go up to Rs32,000 crore.

The aim behind putting a cap is to cover a majority of farmers who have been unable to pay their loans over the past few years.

The state also plans to release Rs10,000 in the next few days, so farmers can start sowing for the kharif season which starts with the monsoon. The amount will be adjusted in the waiver to be given to the farmers.

The high-powered group of ministers met on Monday to decide the parameters and criteria for eligibility.

“Farmers whose family members have government jobs or those filing income-tax returns will not be eligible for the waiver. Of the 1.37 crore registered farmers in the state, 80 lakh have taken loans, while 30 lakh have been unable to repay them. Our aim is to reach out to most farmers in distress,” said a senior minister, on condition of anonymity.

While the government wants a limit of Rs50,000, farmers’ outfits are unlikely to agree to anything below Rs1 lakh. According to the government’s estimates, 80% of indebted farmers own less than 5 acres.

“We don’t want rich farmers to get waiver. We will amicably decide the limit after meeting all stakeholders. We plan to conduct surveys to ascertain the pending loan amounts,” said revenue minister Chandrakant Patil, who heads the high-powered group of ministers.