MUMBAI: The Maharashtra cabinet on Tuesday approved a Rs 7,500 crore provision to provide advance financial assistance of Rs 5,000 each to eligible farmers in 304 drought-hit talukas across the state ahead of Diwali.
The Rs 5000 financial assistance is expected to benefit around 1.5 crore farmers, and this amount will be transferred directly to their bank accounts through the Direct Benefit Transfer (DBT) system.
Under the scheme, farmers in the 304 drought-hit taluks whose crops have suffered more than 33 per cent damage will be eligible for the advance payment.
The state administration has also initiated survey to finalise the crop damage assessments and area-wise details to determine the assistance payable to affected farmers. The advance payment is intended to provide immediate financial support ahead of the Diwali festival while the assessment and relief process continues.
To simplify the disbursement process, farmers who completed their electronic Know Your Customer (e-KYC) verification under various government schemes between November 1, 2025, and the date of the announcement will not be required to repeat the process.
The government has also made a special provision for farmers cultivating land under forest leases who have not yet received their Agristack Farmer Identification Number (Farmer ID). These farmers will be eligible for advance assistance based on their e-KYC.
Additionally, the state government has announced the fourth farm loan waiver list, which will benefit 4,15,000 farmers. Maharashtra State Cooperation Department has submitted a proposal to the finance department seeking Rs 4,000 crore for the loan waiver of these beneficiaries.
The scheme provides for a waiver of eligible outstanding crop loans of up to Rs 2 lakh, subject to prescribed conditions. Marathwada accounts for the largest reported share of beneficiaries, with around 6.27 lakh farmers receiving loan waiver benefits.
The Maharashtra cabinet also discussed complaints about finance companies allegedly harassing farmers over loan repayments. Shiv Sena Ministers reportedly called for strict action against companies found to be intimidating farmers facing financial distress.
