Govt extends relief on farm loan interest
NEWDELHI:Amid widespread farmers’ protests and the debt waiver of agriculture loans in Uttar Pradesh, the Union cabinet headed by Prime Minister Narendra Modi on Wednesday decided to extend the interest subsidy on short-term crop loans given to farmers in the current fiscal.
Farmers who repay the loan on time will be provided an interest subsidy of 5%.
But those who fail to repay on time will get a benefit of 2%. This move will cost the exchequer ₹20,339 crore in the current financial year. The interest subvention scheme has been an ongoing programme.
The scheme will allow farmers to avail short term crop typically for a period of one year at 4%. Besides, farmers taking a loan of up to ₹3 lakh can avail this benefit.
“This institutional credit will help in delinking farmers from non-institutional sources of credit where they are compelled to borrow at usurious rates of interest,” a statement issued by the government said.
The interest subvention scheme will allow farmers, especially those categorised as small and marginal, to access cheaper credit from banks and will provide them relief at a time when prices have been declining.
The move comes in the wake of rising pressure on the government after massive farmers’ protest.
Recently, farmers were killed in police firing in Mandsaur. Farmers have been demanding a debt waiver package and higher prices for their produce. “The interest subvention scheme will bring relief to the farmers, especially in a scenario where prices are declining,” Soumya Kanti Ghosh, chief economic adviser, State Bank of India group, told Hindustan Times.
We need a platform for deliberations when there are several streams of thoughts and ideologies. For instance, if I am talking about media and don’t invite mediapersons for deliberations then how will I get suggestions? This is for deliberations with stakeholders and preparing an action plan. Such a major incident has happened (in Mandsaur). A government should protect people’s life but here the protector has turned into perpetrator (rakshak hi bhakshak ban gaya).
long will it go on? When Sonia ji and Manmohan ji waived the loans of ₹72,000 crore, there was no demand and demonstration. Still they did it in the interest of the farming community and the country… 12,000 farmers are committing suicide every year. There are an alarming number of farmer suicides in Madhya Pradesh, too, but the government doesn’t want to redress farmer grievances. The CM wasn’t sensitive enough to visit the families of those killed and apologise to them immediately after the incident. Instead he went on a fast. Apki sarkar logon ko goliyon se bhoon de, apki sarkar logon ko hospital pahuncha de aur aap upwaas par baith rahe ho...Ye kya ho raha hai? Mazak? (Your government is gunning down people, it is sending people to hospitals and you [Chouhan] sit on a fast...What is happening? Is it a joke?)