Parliament Question: Financially Distressed Farmers in Maharashtra

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 2301 ANWERED ON MONDAY, DECEMBER 15, 2025/AGRAHAYANA 24, 1947 (SAKA) Financially Distressed Farmers in Maharashtra

2301. SHRI BHASKAR MURLIDHAR BHAGARE:

SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:

SMT. SUPRIYA SULE:

SHRI SANJAY DINA PATIL:

DR. AMOL RAMSING KOLHE:

PROF. VARSHA EKNATH GAIKWAD:

Will the Minister of FINANCE be pleased to state:

(a) whether Central Government is aware that farmers across several districts of Maharashtra are facing acute financial distress due to large-scale crop losses caused by excessive and unseasonal rains, if so, whether reports have been received that banks are pressurising affected farmers for loan repayment, thereby aggravating their mental and financial hardship and if so, the details thereof;

(b) whether the Government proposes to issue directions or advisory guidelines to public sector banks, cooperative banks and other lending institutions to temporarily suspend recovery proceedings, delay repayment schedules or provide a moratorium period for farmers affected by the recent rains in Maharashtra and if so, the details thereof;

(c) whether the Government intends to extend financial support to the rain-affected farmers of the said State through compensation, resowing assistance, interest subvention, restructuring of crop loans or any special package to help them prepare for the upcoming cropping season; and

(d) if so, the details of expected benefits of such measures? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) There is no pressure from Banks for loan repayment on farmers affected by excessive & unseasonal rains; as reported by State Level Bankers’ Committee (SLBC), Maharashtra,

(b) Reserve Bank of India (RBI) has issued Master Directions on 17 October 2018 on relief measures by banks in areas affected by natural calamities which inter-alia provides restructuring of loans without downgrade in asset classification and sanctioning of fresh loans,in the event of natural calamities declared by State/Central Government. In this regard, as reported by the SLBC, Maharashtra, Government of Maharashtra vide letter dated 26.11.2025 has declared natural calamity in the state and Banks in the state have been advised by SLBC to adhere to the RBI Guidelines on Relief Measures in areas affected by natural calamities.

(c) and (d) On receipt of communication dated 26.11.2025 from Government of Maharashtra about declaration of natural calamity in the state, SLBC, Maharashtra has informed all its member Banks to restructure eligible crop loans & adjourn loan recovery from rain affected farmers as per RBI guidelines. As per information received from member banks by SLBC, Maharashtra, 17.29 lakh eligible accounts amounting to ₹26,658.77 crore have been identified for restructuring/rephasement.

Further, Para 2(v) of the Modified Interest Subvention Scheme (MISS) Guidelines provides that the applicable rate of interest subvention for this year will be made available to banks for the first year on the restructured loan amount. Such restructured loans will attract normal rate of interest from the second year onwards.

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