Maharashtra Budget 2026 Announces ₹2 Lakh Farm Loan Waiver for Farmers

The Maharashtra government announced a major relief measure for farmers while presenting the Maharashtra Budget 2026 in the State Assembly. Chief Minister Devendra Fadnavis declared a crop loan waiver of up to ₹2 lakh for farmers whose outstanding dues remain unpaid up to September 2025.

The announcement is being seen as one of the biggest highlights of the budget, aimed at reducing the financial burden on farmers across the state. With agriculture continuing to face challenges such as fluctuating market prices, rising input costs and unpredictable weather, the government said the decision was taken to provide immediate relief to farmers struggling with debt.

Loan Waiver Up To ₹2 Lakh

According to the budget announcement, farmers with pending crop loans of up to ₹2 lakh will be eligible for the waiver scheme. The relief will apply to crop loans taken from banks and cooperative institutions.

Officials said the government expects the scheme to benefit a large number of farmers across Maharashtra, especially small and marginal farmers who are often the most affected by debt cycles.

The waiver is also expected to bring financial stability to rural households and help farmers prepare for the next agricultural season without the burden of accumulated loans.

Incentive For Farmers Who Paid Loans On Time

Along with the loan waiver, the government has also introduced a special incentive for farmers who maintained financial discipline.

Farmers who regularly paid their loan instalments on time will receive an incentive of up to ₹50,000 from the state government.

This step aims to ensure that farmers who repaid loans responsibly are also rewarded and not left out while relief measures are provided to those facing financial stress.

Government Focus On Strengthening Agriculture

The loan waiver announcement reflects the government’s broader focus on strengthening the agriculture sector in Maharashtra. The state leadership said supporting farmers remains a priority as agriculture continues to be a key pillar of the rural economy.

Officials believe the scheme will not only provide short-term relief but also help stabilise the rural financial system and encourage better credit practices among farmers.

With this announcement, the Maharashtra Budget 2026 has placed significant emphasis on farmer welfare while attempting to address long-standing concerns related to agricultural debt in the state.