Maharashtra Allocates ₹4,000 Crore for Farmers' Loan Waiver

In a significant move to support farmers, the Maharashtra government has approved the release of ₹4,000 crore for the Punyashlok Ahilyadevi Holkar Farmers' Loan Waiver Scheme, 2026. This decision was communicated through a Government Resolution (GR) issued by the Cooperation Department, allowing eligible borrowers to receive financial benefits directly into their bank accounts.

The scheme, which aims to alleviate the financial burden on farmers, was initially approved by the state Cabinet on June 2, 2026. The GR highlighted that ₹6,551 crore were available under the relevant budget head for the loan waiver initiative, from which the government has now sanctioned ₹4,000 crore to facilitate the transfer of funds.

For the financial year 2026-27, the Maharashtra government has earmarked a total of ₹20,552 crore for the loan waiver scheme through supplementary demands for grants. Out of this, ₹14,001 crore had already been allocated to the Commissioner and Registrar of Cooperative Societies through previous government resolutions, ensuring that funds are readily available for disbursement.

The latest allocation follows a proposal from the Commissioner and Registrar of Cooperative Societies submitted on October 21, which sought ₹4,000 crore to ensure that eligible loan accounts receive the necessary financial support. This initiative is expected to significantly benefit farmers across the state, particularly those facing financial distress due to agricultural challenges.

Looking ahead, the Maharashtra government is poised to continue its efforts in supporting the agricultural sector, with further allocations and initiatives likely to be announced in the coming months. The focus remains on ensuring that farmers receive timely assistance to mitigate the impacts of drought and other adversities affecting their livelihoods.