Latest news on farm loan waiver scheme
Telangana | Written by : Suryaa Desk
In what should come as music to the ears of farmers in Telangana, the State government is likely to commence the process of farm loan waiver scheme by this month-end. The State Cabinet is expected to accord necessary approvals along with the guidelines for implementation of the scheme during its next meeting, benefiting about 48.14 lakh farmers.
During the Vote-on-Account Budget presentation in February, Chief Minister K Chandrashekhar Rao announced waiver of all crop loans up to Rs 1 lakh that are outstanding as on December 11, 2018. The promise was made by the Chief Minister during the State Assembly election campaign last December. An amount of Rs 6,000 crore was proposed in the Vote-on-Account Budget for the loan waiver scheme.
In its first term after the State formation, the TRS government implemented the loan waiver scheme, which benefited 35.19 lakh farmers in the State. As part of the fresh implementation of the scheme for loans availed till December 11, 2018, an estimated 48.14 lakh farmers are expected to benefit. Of this, about 19 lakh farmers availed farm loans upto Rs 50,000, while another 18 lakh farmers obtained crop loans amounting between Rs 50,000 and Rs 1 lakh. The remaining 11.14 lakh farmers took crop loans of more than Rs 1 lakh.
With the sowing season scheduled to commence in the first week of June, there were apprehensions over implementation of the crop loan waiver scheme among farmers as no guidelines were released. Sources in the Agriculture Department told Telangana Today that the officials completed ground work for implementation of the scheme, but were awaiting the State Cabinet approval for necessary guidelines to execute it. They indicated that the guidelines could be similar to the scheme implemented previously, and waiver amounts will be paid in four installments adhering to banking norms. They are also awaiting instructions from the State government on the issue of extending the scheme to about six lakh farmers who availed crop loans against gold.