EC clears state’s proposal for farm loan waiver

Priyanka Kakodkar

Mumbai: The Election Commission of India (EC) has given its approval for the state’s proposed farm loan waiver during the model code of conduct for the MLC polls, which is on till June 25. This has cleared the decks for the waiver, and the state cabinet is likely to take it up next week.

Chief minister Devendra Fadnavis had earlier said that the farm loan waiver, which had been promised in the Mahayuti govt’s manifesto for the state assembly polls in 2024, would be announced before June 30. He has also said that the model code of conduct was unlikely to pose a problem. The state had applied to the EC for clearance.

The EC cleared the proposed loan waiver on the grounds that it had been announced much earlier and not during the election period. Also, that the voters for the poll are not the beneficiaries of the waiver. The voters for the MLC polls include members of zilla parishads, municipal councils and corporators. These categories are likely to be excluded from the waiver.

Around 35–40 lakh farmers in Maharashtra are expected to benefit from the waiver, which will cost the exchequer about Rs 27,000 crore, according to the Pardeshi panel report submitted to CM Fadnavis.

The CM had announced the Punyashlok Ahilyadevi Holkar farm loan 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 Sept 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 an incentive payment,” Fadnavis had said.

The waiver had been announced after agitations held by the Prahar Janshakti Party led by Bachchu Kadu. This had led to the formation of the Pardeshi committee in Oct 2025 to suggest the 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 govt then led by Fadnavis. In 2019, the MVA govt led by Uddhav Thackeray had announced the Mahatma Jyotirao Phule Shetkari Karjmukti Yojana.

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