The Maharashtra Government on Tuesday sanctioned a massive Rs 36,585-crore crop loan waiver scheme, which is expected to directly benefit 56 lakh farmers. The scheme will waive outstanding loans up to Rs 2 lakh and offer a Rs 50,000 incentive to farmers who have regularly repaid their dues, it said.“We have decided to waive farm loans up to Rs 2 lakh. We have also decided to give Rs 50 lakh (as an incentive) to those who pay loans regularly,” said Chief Minister Devendra Fadnavis.He said the farm loan waiver scheme fulfils a promise made by the Mahayuti parties — the BJP, Shiv Sena and the NCP — ahead of the 2024 Assembly polls.Fadnavis said the committee formed to study the loan waiver has started gathering information on the number of farmers requiring the credit relief. As per the information gathered from banks so far, the panel has received details of 28-30 lakh farmers. It will still take 15-25 days to compile the entire data, the CM stated.“This will not be a restrictive loan waiver. There are 20 lakh accounts linked to farmers that have repaid loans regularly and are eligible for the Rs 50,000 incentive,” he added.A committee headed by Praveen Pardesi, CEO, Maharashtra Institution for Transformation (MITRA), was tasked with determining the final number of beneficiaries and the total financial burden on the state.Fadnavis had ordered the administration to credit the loan waiver amount by June 20. While the state Cabinet has now approved the proposal, its formal announcement has been put on hold because of the Maharashtra Legislative Council (MLC) election code of conduct.According to the Cabinet, there are 65 lakh bank accounts belonging to farmers who have availed crop loans amounting to Rs 36,585 crore. Of these, 56 lakh farmers are eligible under the loan waiver scheme. This decision covers arrears up to September 30, 2025.Ajit Nawale, secretary of the All-India Kisan Sabha, welcomed the Cabinet’s decision and said the focus should now be on implementation. “The state government should ensure that the waived off amount is credited to the banks by the end of June 2026 as June is the last month to repay crop loans,” he said.The Tamil Nadu Government had recently announced Rs 2,044.46 crore cooperative crop loan waiver scheme. The AAP-led Punjab Government had also introduced a crop loan waiver providing debt relief of up to Rs 2 lakh for small and marginal farmers, particularly benefiting marginal farmers who hold less than 2.5 acres of agricultural land.Citing deteriorating condition of the agricultural sector, several farmers’ organisations had urged the Maharashtra Government to implement a farm loan waiver immediately, rather than waiting for the current June 30 deadline.