The Maharashtra government on Sunday announced a loan waiver for small and marginal farmers, paving the way for the disbursal of fresh loans to them "with immediate effect".

Following the announcement, the farmers called off the protests scheduled for today and revoked calls for Rail-Roko and Highway Jam on June 13 and June 16, respectively.

"Discussions between the government of Maharashtra and representatives of farmers have reached a consensus and farmers have called off the strike," Maharashtra Chief Minister Devendra Fadnavis said.

Fadnavis, after making the announcement, also said that the conditions and details will be finalised by a joint committee and tweeted: "The government has also accepted the demand of farmers to increase the milk prices."

After 11 days of protests by farmers demanding a loan waiver and fair prices for their produce, Fadnavis could possibly be writing-off the largest-ever loan waiver in the state's history.

These long pending announcements were made after a marathon meeting of a panel of ministers with the steering committee of farmers' activists.

The decision will benefit over 31 lakh farmers and cost the exchequer Rs 30,000 crore.

Criteria for "big farmers" will be decided by a committee including farmers representatives, based on which, further waiver will be approved by July 24.

A deadline stipulated by the farmers groups, failing which they have threatened another round of intensified stir.

"It's a revolutionary decision aimed at giving relief to farmers," said Chandrakant Patil, revenue minister who headed the high-power committee set up by the CM.

Farmers termed the government's decision as a "big victory" and "like Diwali".

Dhanajya Dhorade, a farmer leader from Puntamba where the stir first began, said he was happy that the agitation was successful and demands of the farmers were met.

Another farmer leader, Raghunathdada Patil, said the minister had assured them that "all loans" of farmers will be waived.

"The atmosphere now is like a Diwali celebration. 100 per cent of our demands have been accepted," he said.

CM Fadnavis, who had been a part of waiver demand while in Opposition, had been non-committal on the issue till recently. He had insisted that a waiver was "not a solution" and had maintained that his government was working on a "long term solution" to improve farmers' lives.

The government even sought to deflate the farmers' stir last week after holding talks with a section of activists and announcing waiver for small and marginal farmers October onwards..

As the wait for a waiver prolonged, four marginal farmers committed suicide last week due to debt with one of them having written in the suicide note that unless the Chief Minister visits his farm, his body should not be cremated.

"A little miscalculation would have cost the state big price and damaged Fadnavis image considerably. Since ally Shiv Sena and Swabhimani Shetkari Sanghatna were also at farmers' side, BJP was left with no option but to accept the demands," a senior BJP leader said.

Senior Congress leader Radhakrishna Vikhe Patil said that the government's decision is the victory of farmers' struggle.

However, the Leader of Opposition in Maharashtra Assembly Radhakrishna Vikhe Patil said that the decision was also the result of the 'Sangharsh Yatra' organised by the Opposition.

"The Fadnavis government will have to bear a heavy cost if it fails to implement the decision," Patil said.

After Uttar Pradesh, Maharashtra is the second Bharatiya Janata Party (BJP)-ruled state to waive off farm loans in the last two months.

UP will spend nearly Rs 36,000 crore on 94 lakh small and marginal farmers while Maharashtra is expected to spend much more than the current estimate of Rs 30,000 crore once "big farmers" are also added in the relief bracket.

In ferment for the last several days, Madhya Pradesh's Mandsaur, the epicentre of a violent stir by farmers, remained peaceful today, prompting Chief Minister Shivraj Singh Chouhan to end his indefinite fast.

Meanwhile, Madhya Pradesh Chief Minister Shivraj Singh Chouhan end his indefinite fast and announced a slew of schemes for their benefit but issued a stern warning to those who engaged in "incendiary activities".

With inputs from Agencies