The Maharashtra state cabinet approved a farm loan waiver scheme worth ₹36,585 crore [1] to provide debt relief to agricultural workers.
This move aims to alleviate agricultural distress and provide financial stability to rural populations ahead of the monsoon season. By clearing outstanding debts, the government seeks to ensure farmers can invest in the upcoming planting cycle without the burden of previous arrears.
The initiative, known as the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna (PAHSKY), is expected to benefit approximately 56 lakh farmers [1]. Some reports specify the number of beneficiaries as 55.72 lakh farmers [2]. The scope of the relief is broad, with the government saying that more than 65 lakh accounts will be covered [1].
Under the terms of the scheme, the maximum loan amount waived per beneficiary is up to ₹2 lakh per farmer [6]. Additionally, the government has included an incentive for regular crop loan borrowers, providing up to ₹50,000 per borrower [6].
The cabinet meeting took place on a Tuesday in June 2024 [1, 4]. While the financial package has been cleared by the cabinet, the formal announcement of the scheme was deferred due to the prevailing poll code [4].
This relief package is part of a broader effort by the state government to stabilize the agrarian economy in Maharashtra. The focus on both distressed debtors and regular borrowers suggests an attempt to encourage future credit discipline, and provide a safety net for those in deep financial crisis.
“The Maharashtra state cabinet approved a farm loan waiver scheme worth ₹36,585 crore”
The scale of the PAHSKY scheme indicates a significant fiscal intervention by the Maharashtra government to prevent rural insolvency. By targeting over 65 lakh accounts and offering incentives to regular borrowers, the state is attempting to balance immediate poverty alleviation with the long-term sustainability of the agricultural credit system.
