By Subham K., Agricultural Policy Correspondent
Published: June 22, 2025 | Last Updated: June 22, 2025
Key Quote
“The revised criteria will ensure that genuine small and marginal farmers benefit promptly, while maintaining fiscal prudence,”
— Chandrashekhar Bawankule, Revenue Minister, Maharashtra.
5 Key Takeaways
- Committee Formation: A high-level committee, headed by the Cooperation Department, will finalize the new waiver norms within 15 days. indianexpress.com
- Targeted Beneficiaries: Only small and marginal farmers with outstanding crop loans up to ₹1.5 lakh per account will be eligible.
- Digital Verification: Aadhaar and land-record linkage through the MahaDB portal will be mandatory for transparent processing.
- Fiscal Impact: The state estimates an additional burden of ₹500 crore to cover all qualifying accounts.
- No ‘No-Due’ Certificate for Small Loans: Loans up to ₹50,000 will now be waived based on a self-declaration, per recent RBI guidelines. pib.gov.in
Background
Since its launch in 2017 under the Chhatrapati Shivaji Maharaj Shetkari Karj Mukti Yojana, Maharashtra’s farm loan waiver had treated the farmer’s household as one unit eligible for a ₹1.5 lakh cap per family. In practice, this left out many smallholders and tenant farmers. Mounting political pressure—most recently, hunger strike leader Bachchu Kadu—forced the government to revisit the scheme. indianexpress.com
What’s New in the Revised Criteria
- Individual Entitlement: Each farmer with a separate loan account can now claim up to ₹1.5 lakh, rather than one waiver per family.
- Scope Limited to Crop Loans: Only short-term crop loans from cooperative and commercial banks qualify. Loans for allied activities (e.g., dairy, equipment) are excluded.
- Self-Declaration for Small Loans: In line with the RBI’s March 2025 circular, loans up to ₹50,000 will be waived on the basis of a borrower’s self-declaration, dispensing with ‘no-due’ certificates. pib.gov.in
- Mandatory Digital Linkage: Beneficiaries must link their Aadhaar and 7/12 land records on the MahaDB portal to enable auto-processing.
- Exclusion of Large Defaulters: Farmers with outstanding balances above ₹1.5 lakh after repayment of excess dues will be ineligible.
Expert Analysis
“By narrowing the focus to smallholders and streamlining paperwork via digital platforms, the state can curb leakages and accelerate relief,”
— Dr. Rajeev Sharma, Senior Fellow, ICRIER (Indian Council for Research on International Economic Relations).
This approach balances farmer welfare with the state’s fiscal constraints, estimated at an extra ₹500 crore over the current budgetary projections. business-standard.com
What Happens Next?
- Committee Report: Due by July 5, 2025, after stakeholder consultations across ten districts.
- Cabinet Approval: Revised norms to be tabled in the next legislative session (starts June 30).
- Roll-out Plan: Digital portal enhancements and bank-level training scheduled through August 2025.
Fact-Check
Claim: “All farmers, regardless of landholding size, will get a waiver.”
- Verdict: False. Only small and marginal farmers (loans ≤ ₹1.5 lakh) are eligible under the revised criteria.
Claim: “No documentation required for any loan waiver.”
- Verdict: False. Aadhaar and land-record linkage are mandatory; loans above ₹50,000 still need proof of outstanding balance.
Daily Digest
- Cyclone Alert: IMD issues warning for coastal Maharashtra; fishermen advised to stay ashore.
- Budget Recap: State Finance Minister Ajit Pawar’s interim review hints at increased farm subsidies.
- Market Watch: Soybean and cotton futures rally on tightening output estimates.
