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Maha govt announces major loan relief, expanded drought coverage for farmers

News Desk by News Desk
October 1, 2026
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Mumbai, Oct 1 (IANS): Facing a severe drought triggered by persistent rainfall deficits and heightened El Niño threats, the Maharashtra government, led by Chief Minister Devendra Fadnavis, on Thursday announced a sweeping relief package for the state’s distressed farming community. In a landmark decision, the government issued an order, staying all agricultural loan recoveries across drought-hit regions.

To ease immediate financial strain, banks have been directed to restructure existing crop loans — setting a strict deadline of April 30, 2027, to complete the process — while ensuring fresh crop credit remains fully accessible for the upcoming Kharif season.

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Revenue Minister and Drought Relief Sub-Committee Chairman Chandrashekhar Bawankule issued a stern directive to local administrations, instructing District Collectors and police authorities to prevent any bank or credit society representatives from approaching farmers for recovery during this crisis.

Following strong pushback from ministers and ruling alliance MLAs over excluded pockets, the cabinet added 43 new talukas to the drought list. Over 305 talukas — encompassing nearly 75 per cent of the state — are now covered under ‘Trigger-1’ drought mitigation measures.

Examination fees for Class 10 and Class 12 students in all designated drought-affected regions have also been waived.

To prevent distress migration and secure rural livelihoods, the Employment Guarantee Scheme (EGS) department has unlocked Rs 6,728 crore. The funds will drive local employment across various projects, including irrigation works, cattle sheds, orchard plantations, borewell recharge units, bamboo cultivation, and public lake repairs.

With drinking water shortages intensifying and crop yields severely impacted, the administration has placed water management and rural employment at the forefront of its emergency strategy.

To support farmers, agricultural labourers, and affected rural populations, the state government has extended a 12-point relief and concessions package for the designated 265 talukas.

The government has announced full waiver of land revenue for affected farmers, restructuring of existing agricultural loans, immediate stay on the recovery of all agriculture-related bank loans, exemption/concessions on current electricity bills for agricultural pumps above 7.5 HP capacity (up to 7.5 HP is already waived), waiver of examination fees for school and college students in the affected zones, relaxation of work norm criteria under the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (erstwhile Mahatma Gandhi National Rural Employment Guarantee Act) to maximise employment generation and deployment of water tankers wherever drinking water shortages occur.

Further, the government has issued strict orders preventing the disconnection of agricultural pump power supplies in declared ‘scarcity villages’. It has ordered the implementation of targeted distribution systems to prevent foodgrain shortages for farmers and daily-wage agricultural workers, measures to ensure adequate supply and availability of fodder for cattle, immediate rollout of water conservation works in the affected belts and comprehensive planning for drinking and livestock water resources in accordance with government directives.

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