Good News for Farmers! Banks in Maharashtra asked not to recover Loans from Farmers, Govt may waive off Loans

The Maharashtra government has announced that no recovery proceedings will be initiated against farmers by banks until the state finalizes its new loan waiver scheme.

A committee headed by Pravin Pardeshi, the Economic Advisor to the Chief Minister, has been formed to study and recommend the structure of the loan waiver. The government is expected to take a final decision by June 30. Until then, all banks will be instructed not to take any harsh recovery measures against farmers, said Revenue Minister Chandrashekhar Bawankule while speaking to reporters after returning from Mumbai following discussions with farmers’ representatives.

Strict Criteria to Ensure Only Deserving Farmers Benefit

Minister Bawankule emphasized that the upcoming loan waiver will include strict eligibility criteria to ensure that only genuinely distressed and deserving farmers receive the benefit.
“It should not benefit the rich or well-to-do agriculturists,” he said. The expert committee will not only define these eligibility norms but also study why earlier loan waiver schemes failed to reach the truly needy farmers. The committee will also prepare recommendations to prevent farmers from falling into a debt trap again in the future.

State Has Sufficient Funds for Loan Waiver

Dismissing allegations that the state lacks funds for the scheme, Bawankule clarified that Maharashtra is financially capable of managing the loan waiver. “Whenever farmers have faced distress, the government has mobilized adequate funds. We have handled larger financial commitments in the past. The state will not need to take fresh loans to clear farmers’ debts. Appropriate financial arrangements will be made,” he assured.

Farm Leaders Support Selective Loan Waiver

Farmer leader and Prahar Janshakti Party chief Bacchu Kadu, who participated in the talks, also supported the idea of setting limits for eligibility.
“Why should rich farmers or those with multiple income sources get a waiver just because they own farmland?” he asked.
However, Kadu insisted that it is the government’s responsibility to arrange funds for the waiver, regardless of how it manages to do so.

Responding to opposition leader Vijay Wadettiwar’s charge that the June 30 deadline is just a delaying tactic, Bawankule said that the process of setting fair and transparent criteria takes time.
“The committee will work with due diligence, and opposition allegations hold little importance,” he said.