Maharashtra announces its third farm-loan waiver in a decade, covering dues up to ₹2 lakh and rewarding regular repayers
Waivers drain state finances and offer little lasting benefit to farm welfare
Repeated bailouts weaken repayment habits. Incentives for regular payers cannot fully fix this
The RBI warns waivers damage credit culture. Banks may cut lending as defaults rise
Waivers often miss the most vulnerable and tend to help relatively better-off farmers
Without structural reform and income support, states will keep turning to costly waivers