Lok Sabha Question No. 2301 (UNSTARRED), answered on 2025-12-15
Subject: Financially Distressed Farmers in Maharashtra
Ministry: FINANCE
Asked by: Dr. Amol Ramsing Kolhe, Shri Mohite Patil Dhairyasheel Rajsinh, Smt. Supriya Sule, Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Bhaskar Murlidhar Bhagare

## 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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