The Maharashtra state government has announced a major relief for farmers by waiving stamp duty on agricultural and crop loans of up to Rs 200,000. The measure, approved by the state cabinet under Chief Minister Devendra Fadnavis and notified in the official gazette, comes into effect on 1 January 2026 and is expected to benefit thousands of borrowers across the state.
Revenue Minister Chandrashekhar Bawankule formally announced the decision on Saturday. He said that stamp duty charged on documentation for all farming and crop loan transactions up to Rs 2 lakh will be completely waived from the start of next year. The notification was issued by the Revenue and Forest departments under powers granted by section 9(a) of the Maharashtra Stamp Act, 1958.
Maharashtra crop loan stamp duty waiver details
The waiver eliminates the additional upfront cost traditionally levied when farmers obtain crop loans from banks. Authorities believe the relief will release capital that can be used directly for agricultural inputs such as seeds, fertiliser, pesticides and machinery, or to cover seasonal labour and other immediate needs.
Officials highlighted agriculture as an inherently risky enterprise that is vulnerable to climatic variation. Because farmers often need rapid access to credit to manage cropping cycles and input purchases, even relatively small fees can discourage formal borrowing or reduce the effective amount available for production. By removing the stamp duty on loans up to Rs 200,000, the state aims to make formal credit more affordable and useful for day-to-day farming operations.
Agricultural experts welcomed the move, noting it will increase the net benefit of sanctioned loans and strengthen the link between formal finance and farm productivity. They said the waived fee will mean a larger share of borrowed funds reaches the field, enabling farmers to invest in timely sowing and crop care.
The state government reminded citizens that this is not the first fee relief measure. Earlier, Maharashtra had waived the Rs 500 stamp fee that was attached to various affidavits and certificates, a step that benefitted millions, including students sitting for tenth and twelfth grade examinations. Officials say the new crop loan waiver builds on that precedent, extending targeted relief to a key economic group.
Implementation guidance has been circulated to public and private lending institutions so they can adjust loan documentation and fee schedules from 1 January 2026. Lenders will be expected to process the waiver at the point of loan issuance. The government has also directed local revenue offices to assist in resolving disputes that may arise during implementation.
Legal authority for the waiver rests on the Maharashtra Stamp Act, 1958, and the government indicated the action was taken in the public interest. Analysts say the relief could improve credit penetration in rural areas and help smallholders better manage seasonal cashflow, though they added its impact will depend on effective coordination between banks and state revenue authorities.
With the notification now published in the gazette, farmers, cooperatives and financial institutions have a clear timeline to prepare. The state expects the measure to ease immediate financial pressure on small and marginal farmers and to support agricultural activity heading into the next planting season.
Key Takeaways:
- Maharashtra crop loan stamp duty waiver announced: stamp duty on crop loans up to Rs 200,000 will be fully waived from 1 January 2026.
- The decision, notified in the official gazette, aims to reduce farmers’ borrowing costs and channel more funds into seeds, fertiliser and equipment.
- Revenue Minister Chandrashekhar Bawankule invoked powers under the Maharashtra Stamp Act 1958 to implement the relief.
- Experts say the waiver will improve access to working capital and complement earlier fee relief measures for certificates and affidavits.
