Uttar Pradesh Finance Minister Suresh Khanna announced a loan-waiver scheme providing up to ₹2 lakh per farmer for approximately 56 lakh farmers [1].
The initiative aims to provide immediate financial relief to the agricultural sector before the onset of the monsoon. By reducing the debt burden on millions of growers, the state government intends to boost agricultural prosperity and ensure farmers have the necessary liquidity for the upcoming planting season.
Khanna said the measure is a "big gift" to the farming community. The announcement followed a cabinet meeting in Lucknow where officials approved 24 different proposals [2]. These proposals covered a range of interests, including commuters and government employees, though the agricultural waiver remains the most significant financial commitment.
The scheme targets a wide demographic of rural workers to mitigate the impact of previous financial losses. By capping the waiver at ₹2 lakh [1], the state seeks to balance broad support with fiscal responsibility.
Lucknow officials said the timing of the rollout is critical. Providing these funds before the monsoon allows farmers to invest in seeds and fertilizers without the immediate pressure of outstanding loans. This strategic timing is intended to maximize the productivity of the current agricultural cycle.
“The scheme provides up to ₹2 lakh per farmer for approximately 56 lakh farmers.”
This large-scale debt relief effort reflects a strategic move by the Uttar Pradesh government to stabilize the rural economy ahead of the critical monsoon window. By addressing the debt of 56 lakh farmers, the state is attempting to prevent a cycle of rural poverty and ensure that agricultural output remains steady, which is essential for regional food security and economic stability.
