Maharashtra suspends farm loan recovery in drought-hit talukas, banks get till April 30, 2027

Inadequate rain this year has created a serious drought situation in the state. Crops have been badly hit in many areas, and farmers face a financial crisis. Against this backdrop, the state government has issued a Government Resolution suspending recovery of agricultural loans to give relief to drought-hit farmers. Orders have also been issued to restructure crop loans.

Under the government's decision, banks have been directed to complete the restructuring of crop loans by April 30, 2027. Banks have also been instructed to make crop loans available to drought-hit farmers so that they do not face a shortage of money in the next kharif season.

Because of the deficient rain, relief measures under Trigger-1 of the drought code have been announced for 305 talukas in the state. Earlier, 265 talukas were covered. More talukas were then added, widening the scope of the drought measures. This means the measures will now reach people in more talukas.

The government has also made clear that farmers in drought-hit areas should not be pressured for loan recovery. Revenue Minister Chandrashekhar Bawankule, who is also chairman of the cabinet sub-committee on drought relief, has instructed that during the drought no employee of a bank or a credit society should go to a farmer's door for loan recovery. District collectors and police officers have also been asked to be given the necessary instructions in this regard.

So that the economic blow of the drought does not affect the education of children from farming families, the government has announced a waiver of examination fees for Class 10 and Class 12 students. The aim is to reduce, to some extent, the financial burden on drought-hit families.

To ensure that farmers and farm labourers in drought-affected areas get work in their own villages, the Employment Guarantee Scheme department has made Rs 6,728 crore available. The funds will be used for irrigation-related works, cattle sheds, individual orchard plantation, borewell recharge, bamboo plantation, works under the Pradhan Mantri Awas Yojana, sheds for sericulture, compost pits and repair of public ponds.

Through the suspension of loan recovery, restructuring of crop loans, availability of fresh kharif loans and Employment Guarantee works, the government is trying to give financial support to farmers and farm labourers in drought-hit areas.