Maharashtra Cooperation Minister Babasaheb Patil on Friday said that to address the recurring cycle of debt, the state government has established a high-level committee on October 30, 2025.
The committee is tasked with recommending both short-term and long-term measures to free farmers from the “debt trap.”
In a written reply to a question raised by members Shiv Sena-UBT leader Bhaskar Jadhav, BJP leader Prashant Thakur and others, the minister informed the state Assembly that the committee has yet to submit its final report but it is currently processing data from banks regarding agricultural loans as of June 2025 and arrears as of September 30, 2025 and records of farmers who consistently repaid loans over the last five years.
The Minister noted that out of an expected 54.63 lakh loan accounts, data for 52.80 lakh accounts has been received and is currently being analysed via computer processing.
Minister Patil said that over 6,00,000 farmers are still waiting for benefits from the 2017 loan waiver scheme. Out of 50.60 lakh eligible farmers, 44.04 lakh have received benefits. The government confirmed that the process to extend benefits to the remaining 6.56 lakh farmers is currently underway. In the case of 2019 crop loan waiver scheme, he stated that it has seen higher completion rates, with 32.29 lakh farmers out of 32.42 lakh eligible beneficiaries already receiving waivers.
Under the Mahatma Phule scheme, 14.50 lakh farmers who underwent Aadhaar authentication have received incentive grants for regular loan repayment.
According to the minister, in light of the heavy rain and floods during the Kharif 2025 season, the government has issued directives to the State Level Bankers Committee (SLBC) and district banks.
“These instructions include restructuring of cooperative crop loans in affected talukas. Besides, a one-year stay on the recovery of agriculture-related loans to provide immediate breathing room for distressed farmers,” he said.
The minister dismissed allegations of a fund shortage, noting that on December 3, 2025, it approved the computer system for the 2017 scheme’s continued implementation.
A fund of Rs 500 crore was sanctioned during the Winter Session of 2025. Furthermore, the government has requested a budget of Rs 5,175.51 crore for the 2026-27 financial year to ensure the continuity of these welfare programs.
The minister’s response comes a day after Chief Minister Devendra Fadnavis in his reply to debate on the Governor’s address on Thursday said a dedicated committee has been formed to study the loan waiver process and its report is currently awaited. He assured the House that the government would fulfil its promise at the appropriate time.
Highlighting the lessons learned from previous crop loan waiver schemes, CM Fadnavis pointed out significant irregularities especially with regard to banking discrepancies. “In past loan waivers, the government has noticed that banks often provide incorrect account information. Some even revive old, dormant accounts to siphon off government funds.
To prevent such fraud, the state is developing a 100 per cent ‘Agri-Stack’. This will serve as a comprehensive digital record of agriculture, integrating farmer registration data, land ownership records, 7/12 extract reports and Aadhaar-linked verification, he said.
By consolidating these data points, the government aims to ensure that the benefits of the loan waiver reach only the genuine and intended beneficiaries.
