REGULATORY · MARKET STRUCTURE · INDIA
Maharashtra sets crop loan waiver cap
Change
Maharashtra’s 2026-27 budget sets a crop loan waiver up to ₹2 lakh for farmers with arrears through Sept. 30, 2025, and a ₹50,000 benefit for certain regular payers.
Why it matters
Maharashtra presented its 2026-27 state budget on March 6, 2026. It includes a crop loan waiver of up to ₹2 lakh for farmers with arrears up to September 30, 2025, with about 28–30 lakh farmers cited as beneficiaries. It also provides ₹50,000 to about 20 lakh farmers who have been repaying instalments regularly under the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojana. The budget estimates revenue receipts of about ₹6.56 lakh crore and a revenue deficit of about ₹40,500 crore.
Implications
- • Covered crop-loan arrears up to the cutoff are eligible for waiver up to the ₹2 lakh cap.
- • A ₹50,000 transfer is defined for qualifying regular instalment payers under the named scheme.
- • The budget books a stated revenue deficit of about ₹40,500 crore.
Who is affected
- • Agricultural lenders servicing crop loans
- • Loan servicing and collections teams
- • Farmers with crop-loan arrears up to the cutoff
- • Farmers qualifying as regular instalment payers under the named scheme
Source
Topics
World & Politics Policy & Regulation Business & Markets Economy Agriculture