The Maharashtra government has permanently shut down the Captive Market Scheme — popularly known as the free saree scheme — which annually distributed powerloom-woven sarees to 25 lakh Antyodaya ration cardholders across the state. The Department of Textiles issued an official Government Resolution (GR) to this effect on Thursday, 16 July 2025, citing unsustainable financial burden as the primary reason for the rollback.

What the Scheme Was

Launched in June 2023 by then Chief Minister Eknath Shinde under the state's Integrated and Sustainable Textile Policy 2023–28, the scheme had a dual mandate: provide free clothing assistance to economically disadvantaged families holding Antyodaya ration cards, and simultaneously bolster the struggling powerloom sector. The government had earmarked ₹100 crore annually for the procurement of 25 lakh sarees, which were traditionally distributed during the Diwali festival. The scheme ran for three consecutive years — 2023, 2024, and 2025.

Why the Government Pulled the Plug

The official GR was explicit in its reasoning. 'Taking into overall consideration the financial assistance provided to various sectors, the projected financial burden of proposed schemes, and the government's other fiscal liabilities, it would not be viable to continue this scheme into the next financial year,' the order stated. The closure comes against the backdrop of a severely strained state fiscal position. In the Budget for 2026–27 presented in March, the government projected a revenue deficit of ₹40,552 crore and a fiscal deficit of ₹1,50,491 crore. Maharashtra's outstanding debt is estimated to rise to ₹11.02 lakh crore in 2026–27, up from ₹9.73 lakh crore in the revised estimates for 2025–26.

The Wider Fiscal Context

The termination follows the Maharashtra government tabling supplementary demands worth ₹97,706.40 crore in the Legislative Assembly on the first day of the monsoon session on 22 June. Notably, this scheme cancellation is not an isolated move — it comes close on the heels of the deletion of 92 lakh women's names from the Mukhyamantri Majhi Ladki Bahin Yojana, another flagship welfare initiative. Together, the two rollbacks mark a significant retreat from welfare commitments made ahead of the 2024 assembly elections.

Impact on Beneficiaries

With the scheme now officially terminated, officials have confirmed that no saree distribution will take place during Diwali 2025 — the first such absence in three years. The 25 lakh Antyodaya families who depended on the annual distribution will not receive any replacement benefit under the current framework. Critics argue the rollback disproportionately affects the state's most economically vulnerable women, who were the scheme's sole intended recipients.

What Happens Next

The government has not announced any alternative clothing assistance programme or compensatory measure for affected families. With Maharashtra's debt load rising and multiple welfare commitments under fiscal review, further rationalisation of state schemes cannot be ruled out, according to budget analysts.