Maharashtra government announces loan waiver to farmers, stir called off The Maharashtra government also set up a panel to to decide the criteria of debt relief and implement the scheme, after which farmers called off their protests.

Moneycontrol News

The Maharashtra government on Sunday agreed to a farm loan waiver to the state's small and marginal farmers and also set up a panel to to decide the criteria of debt relief and implement the scheme, after which farmers called off their protests.

"The government has decided to waive farmers' loans. The loans of farmers with small land holdings stand waived from today itself," Revenue Minister Chandrakant Patil said.

The state government has been under immense pressure from farmers who were protesting for the past few of weeks. The farmers had threatened to intensify the protests from June 12 if their demands were not met.

Patil, who headed a high-powered committee set up by Chief Minister Devendra Fadnavis, announced the news to media after holding discussions with farmer leaders.

Farmer leader and Lok Sabha member Raju Shetti, who participated in the talks, said he was happy that their demands had been met. "Our issues have been resolved. We have decided to temporarily call off our agitation, including the dharna protests scheduled for tomorrow and day after. However, if no satisfactory decision is taken (on the criterion for loan waiver) by July 25, we will restart our stir," Shetti said.

The revenue minister, asked if his announcement on farmers getting new loans from today meant that the old ones would be restructured, said, "It is a simple banking question. Till the old loan is waived, one doesn't get new loan."

Fadnavis had on Friday announced the formation of the six-member committee to look into the various demands of farmers, including the loan waiver.

The panel also comprises senior minister Diwakar Raote of the Shiv Sena, Agriculture Minister Pandurang Fundkar, Finance Minister Sudhir Mungantiwar, Cooperatives Minister Subhash Deshmukh and Water Resources Minister Girish Mahajan.

On June 1, farmers from a village in Ahmednagar district went on strike followed by many farmers groups in other parts, who tried to suspend vegetable and milk supply to Mumbai.

About 1 crore farmers with under 5-acre land holding will be eligible for the waiver which is expected to push up the Maharashtra’s fiscal deficit to 2.71 percent in FY18 of gross state domestic product (GSDP), according to an India Ratings report.

Fadnavis held talks with the farmers on June 3 and assured that loans of small land-owning farmers will be waived by October 31. Maharashtra government had also agreed to waive off penalty and interest on power dues.