Maharashtra farm loan waiver announcement hits code of conduct roadblock

Mumbai: The state government’s plan to announce a farm loan waiver has hit a roadblock — the model code of conduct for the legislative council polls that came into force on Monday. If the election is contested, then the code will remain in force till June 25.

Chief Minister Devendra Fadnavis had earlier said that the farm loan waiver would be declared by June 30. Sources say that after the Pardeshi committee submitted its report to the state on the issue, the cooperation department sent a proposal regarding the waiver for the consideration of the cabinet. However, this proposal can only be taken up after the code of conduct ends.

Speaking to the media earlier, Fadnavis had said that a cabinet sub-committee meeting had been held on the loan waiver and some additional information had been sought.

Between 35 lakh to 40 lakh farmers in Maharashtra are expected to benefit from the state government’s farm loan waiver scheme, which will cost the exchequer about Rs 27,000 crore, according to a panel report submitted to chief minister Devendra Fadnavis last week.

He had announced the Punyashlok Ahilyadevi Holkar farm waiver scheme during the state budget in March. This includes a crop loan waiver of up to Rs 2 lakh for farmers with arrears till September 30, 2025. “Approximately 28-30 lakh farmers will benefit from the loan waiver. Additionally, 20 lakh farmers who have been repaying their instalments regularly will receive Rs 50,000 as incentive payment,” Fadnavis had said.

The waiver had been announced after agitations held by the Prahaar Janshakti Party led by Bachchu Kadu. This had led to the formation of the Pardeshi committee in October 2025 to suggest criteria for the waiver and formulate solutions for the state’s agrarian distress.

This will be the third farm loan waiver in the state. The Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017 was announced by the BJP-Shiv Sena government led by Fadnavis. In 2019, the MVA government led by Uddhav Thackeray had announced the Mahatma Jyotirao Phule Shetkari Karjmukti Yojana.