11 lakh farmers, labourers get waiver on loans worth ₹385cr

MUMBAI: The state government, which has been criticised for its poor implementation of the farm loan waiver, announced that it would waive off Khavati loans (short-term loan disbursed during non-productive period of farmers and farm labourers) of 11.37 lakh farmers and farm labourers. The loans, along with the accumulated interest, amounts to ₹385 crore.

State cabinet on Tuesday gave its nod to waive off ₹361 crore, including unpaid loans of ₹244.60 crore and the interest of ₹116.57 crore disbursed to 11.26 lakh tribal farmers and farm labourers from the Tribal Development Corporation. The Khavati loans were disbursed to them in 2009 and 2014.

The state government had assured the delegation of tribal

organisations that led the Long March to Vidhan Bhavan in November last year that it would waive off the loans.

The organisations had claimed the tribals could not pay off the loans due to continuous drought and other natural calamities that affected their farms over the last 10 years.

“The decision will help tribal farmers and farm labourers to avail fresh farm loans on their 7/12 extract. Banking institutions have been denying farm loans for the pendency of the previous loans. This will be a huge respite for the tribal community,” stated a press statement by the Maharashtra government.

Similarly, ₹24.4 crore worth Khavati loans of 11,390 non-tribal farmers have also been waived off. Both the waivers have been implemented under the farm loan waiver scheme announced by the government in June 2017.