HELP FOR FARMERS TO WADE THROUGH CRISIS
between the prices farmers get and the average modal prices of commodities.
“Our chief minister, when he went on that fast following the Mandsaur incident, indicated then that he would come out with a policy on this. The final shape of this is not ready yet. It’s in the pipeline...” Bisen said.
He said the main idea was to convert outstanding farm loans into zero-interest loans, so that defaulting farmers became eligible for fresh credit again. “This will be a big relief.”
Giving an example, the minister said, if the total outstanding loan amounts were between ₹6,000-6,500 crore, and if the outstanding interests were roughly ₹2,000 crore, then the government “could consider that this interest is waived off”.
Farmers could pay off the interest-free principal outstanding in three equated instalments over the next three years, Bisen said.
“So this is not a loan waiver as such, but a waiver of outstanding interests,” the minister added.
He said ₹4,000 crore had already been allocated for rural sectors in the state’s budget.
Some farmer organisations in the state, however, are preparing to launch a full-scale agita- The waivers will be applicable on the interest payable on loans For example, if the total outstanding loan amounts were between ₹6,000-6,500 crore, and if the outstanding interests were roughly ₹2,000 crore, then the government “could consider that this interest is waived off”, according to MP agriculture minister Gauri Shankar Chaturbhuj Bisen
Farmers could pay off the interest-free principal outstanding in three equated instalments over the next three years, Bisen added Some farmer organisations are demanding a full loan waiver ahead of polls in the state.
tion for a complete loan waiver. “We demand a full loan waiver before the elections. We are launching a non-cooperation movement and farmers won’t pay any loan dues,” said Kedar Sirohi, the leader of Aam Kisa Union, Madhya Pradesh.
So far, Maharashtra, Uttar Pradesh, Rajasthan, Karnataka and Punjab have announced farm-debt waivers.
These waivers by the five states together are likely to widen the combined fiscal deficit of states by ₹1,077 billion or 0.65% of GDP, according to Devendra Kumar Pant, chief economist at India Ratings & Research.