A CRITICAL STUDY ON THE EFFECTIVENESS OF AGRICULTURAL LOAN WAIVER SCHEMES: A CASE OF MAHATMA JYOTIBA PHULE KARJ MUKTI YOJANA IN NAGPUR

With the aim of providing relief from the debts on farmers, the Government of Maharashtra has implemented the Mahatma Jyotiba Phule Karj Mukti Yojana (MJKMY), an agricultural loan waiver scheme. This paper analyses the implementation and outreach of this scheme in the Nagpur district and its impact on the socio-economic condition of the beneficiary farmers. We used a mixed-method approach combining quantitative data obtained through structured questionnaires with qualitative data from interviews and policy reviews. Three or four key indicators — change in income levels, productivity of agriculture, credit access, and psychological stress levels among farmers — were used to assess the outcomes of the scheme. While the scheme provided brief relief and diminished instant debt stress in the near term, problems along with the delay in disbursement, insufficient cognition, and exclusion errors had hindered its holistic effect, the findings show. The paper ends with suggestions to improve policies aimed at the long-term financial sustainability of the farm sector, and the institutional means through which farmers can receive support. The current study adds to the larger discussion about the role of loan waivers in agricultural reform and rural development in India.