Poultry, fisheries may get loan waiver too
The government now plans to set aside a part of the Rs 60,000-crore farm loan waiver package that was announced in the Budget for plantation loans and allied activities.
By Raja Awasthi & Dheeraj Tiwari, TNN |
NEW DELHI: The government now plans to set aside a part of the Rs 60,000-crore farm loan waiver package that was announced in the Budget for plantation loans and allied activities such as poultry farms and fishery farming.
According to finance ministry sources, the government has received requests from four states ��� Andhra Pradesh, Tamil Nadu, Karnataka and Kerala ��� seeking a loan waiver to the tune of Rs 4,000-6,000 crore for farmers involved in these sectors.
���It���s not only these fours states, similar proposals have been received from other states, where there are a large number of farmers involved in the allied sectors,��� a finance ministry official told ET.
Earlier, the Union agriculture minister Sharad Pawar had clarified that the Rs 60,000-crore farm loan waiver scheme would include farmers in allied sectors such as fisheries and dairy.
However, a senior Tamil Nadu state official raised concerns about how this waiver would be implemented and whether the new announcement would also include the state government���s earlier schemes.
���We���ve sought a clarification on this from the ministry,��� the official said.
The Reserve Bank of India (RBI), has also extended its support and help to the government in implementing the scheme in a manner that would strengthen the banking system rather than weaken it.
The government is targeting that the loan waiver scheme will provide relief to farmers who had gone out of the system due to default and were borrowing from money-lenders.
���We are asking states to come up with some feasibility report on how much lending was meant for traditional crops and for plantation crops, which will make the process easier,��� said the finance ministry official.
According to finance ministry sources, the government has received requests from four states ��� Andhra Pradesh, Tamil Nadu, Karnataka and Kerala ��� seeking a loan waiver to the tune of Rs 4,000-6,000 crore for farmers involved in these sectors.
���It���s not only these fours states, similar proposals have been received from other states, where there are a large number of farmers involved in the allied sectors,��� a finance ministry official told ET.
Earlier, the Union agriculture minister Sharad Pawar had clarified that the Rs 60,000-crore farm loan waiver scheme would include farmers in allied sectors such as fisheries and dairy.
However, a senior Tamil Nadu state official raised concerns about how this waiver would be implemented and whether the new announcement would also include the state government���s earlier schemes.
���We���ve sought a clarification on this from the ministry,��� the official said.
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The announced scheme is likely to waive off Rs 50,000 crore worth of loans owed by small and marginal farmers (farmers who own below two hectares of land) and provides for a settlement scheme for other farmers that would amount to another Rs 10,000 crore. The Reserve Bank of India (RBI), has also extended its support and help to the government in implementing the scheme in a manner that would strengthen the banking system rather than weaken it.
The government is targeting that the loan waiver scheme will provide relief to farmers who had gone out of the system due to default and were borrowing from money-lenders.
���We are asking states to come up with some feasibility report on how much lending was meant for traditional crops and for plantation crops, which will make the process easier,��� said the finance ministry official.
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