The scheme, announced by Chief Minister Devendra Fadnavis at a press meet in Mumbai, involves Rs 34,000 crore of relief.
Named after Maratha warrior king Shivaji Maharaj, the programme will benefit 8.9 million farmers and make 4 million agriculturists debt-free, Fadnavis said.
Farmers in many parts of Maharashtra were on a warpath early this month, which disrupted supply of vegetables and other essentials to cities, including Mumbai.
They were demanding a loan waiver, which was backed by all political parties. The stir was called off after the government gave them a firm assurance on bringing in a comprehensive scheme to help the debt-pressed cultivators.