MP, Chhattisgarh waive farm loans

IN MP, THE AMOUNT OF OUTSTANDING CROP LOANS ON FARMERS STOOD AT ₹75,823 CRORE AS ON MARCH 31 THIS YEAR

BHOPAL/JAIPUR/RAIPUR: In his first decision, taken within two hours of assuming office as chief minister of Madhya Pradesh on Monday, Kamal Nath waived the outstanding short term crop loans of farmers up to ~2 lakh as on March 31, 2018, taken from nationalised and the cooperative banks.

The decision will benefit as many as 3.4 million farmers and will cost the exchequer between ~35,000 to ~38,000 crore, according to the state’s agriculture department. The final figure will be known only after the department gets exact data on outstanding short-term loans.

An order waiving the loans was signed by principal secretary (agriculture) Rajesh Rajora after Nath cleared the proposal. Government officials said the government would soon start issuing farm loan waiver certificates to the farmers.

Chhattisgarh chief minister Bhupesh Bhagel, who too took charge on Monday, followed suit and announced his government will waive farm loans worth ~6,100 crore of around 1.66 million farmers. He also announced that the government will increase the minimum support price for paddy from ~1,700 per quintal to ~2,500 a quintal.

In the run-up to polls, Congress chief Rahul Gandhi promised farm loan waivers in MP, Chhattisgarh and Rajasthan within 10 days of the Congress coming to power.