Sugar cane farmers should clear 2024-25 loans before June 30 to qualify for state’s proposed waiver scheme, says Mushrif

Kolhapur: Minister for medical education Hasan Mushrif on Friday appealed to sugar cane farmers who took crop loans between July 2024 and June 2025 to clear their pending dues before June 30, 2026, in order to qualify for the proposed loan waiver scheme and an incentive of Rs 50,000 aimed at encouraging timely repayment.

The state has introduced the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Scheme 2026. Under the scheme, crop loans of up to Rs 2 lakh outstanding as of June 30, 2025, will be waived. Additionally, farmers who repaid their loans regularly between 2022 and 2025 will be eligible for an incentive of Rs 50,000.

Mushrif said in the case of sugar cane, loans were typically disbursed one year and due for repayment by June 30 of the following year. “This system ensured that farmers received payments from sugar mills and could repay their loans to banks,” he said.

“To ensure clarity and eligibility, farmers must clear their outstanding dues for 2024-25 before June 30 this year to regularise their accounts and claim the incentive. Payment of the current year’s loan is also mandatory to qualify for the waiver of up to Rs 2 lakh,” Mushrif, who also serves as chairman of the Kolhapur District Central Cooperative (KDCC) Bank, said.

He added that KDCC Bank maintained one of the highest recovery rates among district central cooperative banks in the state, with recovery ranging between 91-99% of crop loans.