Pune: Ajit Pawar Urges Farmers to Repay Loans, Rules Out Loan Waiver in Maharashtra

Malegaon, 28th March 2025: Maharashtra Deputy Chief Minister Ajit Pawar has urged farmers and borrowers to repay their bank loans by March 31, stating that the state government cannot afford a loan waiver due to financial constraints.

Speaking at an event in Malegaon, Pawar emphasized that while the government has implemented several farmer-friendly initiatives—including free electricity, interest subsidies on crop loans, and financial aid for dairy farmers—a complete loan waiver is not feasible. He pointed out that the state has already allocated ₹40,000 crore for the Ladki Bahin scheme, reinforcing the need for financial discipline across all sectors.

AI to Boost Agriculture, ₹500 Crore Allocated
Addressing farmers after inaugurating a newly renovated statue at the Malegaon Cooperative Sugar Factory, Pawar discussed the impact of Artificial Intelligence (AI) in agriculture. He highlighted AI-driven solutions for water and fertilizer management, which can significantly improve sugarcane yields. To promote such innovations, the state budget has allocated ₹500 crore for AI integration in agriculture.

Sugar Industry Challenges and Solutions
Pawar noted that while sugar factories have expanded their processing capacity, sugarcane availability remains a challenge. He cited AI-based solutions developed in Baramati to address this issue and confirmed that district banks are providing financial assistance to farmers. Additionally, the government is working on implementing a ₹1,000 crore irrigation project for Baramati to support sugarcane cultivation.

Taking a veiled swipe at opposition leaders, Pawar remarked that “mere meetings with officials and social media posts won’t solve real issues.” He underscored his leadership in transforming the Malegaon and Someshwar sugar factories, which now offer some of the highest prices in the state.

Sugarcane Payments Exceed FRP
Pawar highlighted that sugarcane farmers initially received ₹2,800 per ton when prices were low to prevent financial distress. However, Malegaon later paid ₹3,132 per ton, surpassing the Fair and Remunerative Price (FRP), while Someshwar paid ₹3,173 per ton. He challenged critics to reflect on whether past protests had genuinely benefited farmers.

Key Announcements from Pawar’s Speech:
Molasses tax reduced from 28% to 5%.
₹500 crore allocated for AI-driven agricultural advancements.
Expansion of sugarcane farming in Baramati through irrigation projects.
₹200 per ton additional payment for ratoon sugarcane in July.
Salary hike for sugar factory workers based on committee recommendations.
Nira Left Canal to remain operational until June-July.
₹1,000 crore funding for a veterinary college and Janai-Sirsai Scheme in Baramati within 100 days.