The Maharashtra Cabinet on Thursday decided to waive interest on loans taken by all farmers across the state.
Chief Minister Sushilkumar Shinde said that the decision would cost the state exchequer Rs 345 crore.
Earlier, the government had announced the scheme for only small and marginal farmers, but on Thursday extended it to others as well in view of the drought.
The Cabinet also decided to continue the monopoly cotton procurement scheme this year.
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