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    Won’t waive farm loans but will offer them at low rates: Agriculture minister.

  • Date : 22 May, 2017
    NEW DELHI: Amid demands for farm loan waiver from different states in the wake of relief to small and marginal farmers in Uttar Pradesh, agriculture minister Radha Mohan Singh on Sunday said the UP's decision was its own and the Centre did not have such a proposal at the national level.
    "Waiver of farm loans by the UP government is their (state) decision. We have no such proposal at the national level. Our approach will be to make adequate farm loans available at concessional rate and on time so that farmers are able to invest in agriculture and achieve high productivity," Singh told TOI.
    His remarks assume significance in view of demands for loan waiver from other states like Maharashtra, Punjab, Tamil Nadu and Karnataka.
    Singh, in fact, said states were free to take such a decision on their own while the Centre would continue to support farmers under interest subvention scheme.
    A day before sharing details of his ministry's performance during three years of the Modi government, Singh said states were also free to extend incentive to farmers for prompt repayment, making it possible to provide them interest-free loans. "States like Madhya Pradesh, Gujarat and Karnataka have done this at their end. Other states can also do this.The Centre is already providing incentives to farmers under the subvention scheme," the minister said.
    Under the interest subvention scheme, farmers get short-term crop loans of up to Rs 3 lakh for one year at an interest rate of 7%.
    An incentive of 3% per annum is provided by the Centre for repayment within the due date. So, in effect, farmers get loans at an interest rate of 4% per annum. If any state desired, it could extend the incentive of 4% to farmers for prompt repayment, making it possible to provide them interest-free loans.
     
    Singh emphasised that the Centre's aim was to make agriculture a viable and profit generating enterprise which his ministry had been working on for the last three years.
    Responding to critics of Prime Minister Crop Insurance Scheme that it has not brought desired results, Singh said the scheme was working well and was benefiting farmers. However, he noted that the success of any insurance scheme, including that of crop insurance, should be judged on its performance over 3-5 years, when good and bad monsoon years are factored in.
    "I am confident that we are in the right direction," Singh said.
     
    Source: http://timesofindia.indiatimes.com/india/wont-waive-farm-loans-but-will-offer-them-at-low-rates-agriculture-minister/articleshow/58781004.cms
 















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25 Aug 2017


Radha Mohan Singh
Union Agriculture Minister
 

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EDITOR'S NOTE

19 Jan 2016

Crop insurance scheme brings cheers

In view of the growing volatility in the agriculture sector caused by vagaries of nature as well as market fluctuations, it is heartening to see the new Pradhan Mantri Fasal Bima Yojana (PMFBY)