This study is based on the agricultural policies in Maharashtra and their impact on NPA levels. The NPA trend is analyzed by studying agricultural loans, crop loans, and term loans in the state over a decade period of 2015–2024. The main reasons for the financial instability of farmers were found to be dependence on monsoon, fluctuations in market prices, wrong expectations based on loan waivers, management errors, and incomplete insurance coverage.

The study found that loan waivers, interest subsidies, irrigation schemes, and insurance schemes have provided short-term relief, but long-term stability has not been achieved yet. The NPA level has been increasing steadily, especially during 2015–2020, while there has been some stability during 2020–24. The study concluded that ensuring production stability, encouraging regular loan disbursements, increasing financial literacy, expanding irrigation facilities and water conservation, and effective implementation of policies are necessary. These measures will improve the financial stability of farmers and keep the NPA ratio on agricultural loans in Maharashtra under control in the long term.