Farm Loan Waiver on Horizon: Minister Signals Relief for Farmers by June 2026

Government's Bold Step for Farmer Relief  
In a major policy signal, the Agriculture Minister revealed plans for a comprehensive farm loan waiver expected by June 2026. This initiative addresses longstanding distress among small and marginal farmers, who form 86% of India's farming community. With crop failures and soaring fertilizer prices exacerbating debts, the waiver promises immediate financial breathing room.

Scope and Eligibility Details  
The scheme targets outstanding loans up to Rs 2 lakh per farmer from public sector banks and cooperatives. States like Maharashtra, Uttar Pradesh, and Telangana-hotspots of farmer unrest-stand to benefit most. Implementation will leverage digital platforms like PM Kisan for swift verification, ensuring transparency and minimizing leakages.

Economic and Political Implications  
Experts predict a Rs 1.5 lakh crore fiscal outlay, potentially spurring rural consumption and agricultural investment. Politically, it aligns with pre-election strategies to consolidate rural votes. However, concerns linger over moral hazard and long-term fiscal health, with calls for complementary measures like crop insurance enhancements.

Key highlights  

• Farm loan waiver likely by June 2026 for loans up to Rs 2 lakh  
• Targets small and marginal farmers across key states  
• Expected to cover Rs 1.5 lakh crore in outstanding dues  
• Aims to revive rural economy amid input cost pressures  
• Digital rollout via PM Kisan for efficient execution  

Sources: The Economic Times, Press Information Bureau (PIB), Hindustan Times