New Delhi. The Central Government has approved cheap debts by giving great relief to them among the ongoing farmer movement across the country. After this decision of the Central Government, farmers will get cheaper crop loans this year. In addition, farmers will also get cheaper loans for safe storage of their produce. It was decided at the meeting of the Cabinet chaired by Prime Minister Narendra Modi.
According to the decision that farmers regularly pay their debt at the right time will be available at a low rate of four per cent. The Government has approved a fund worth of Rs 20,339 crore for the farmers to get cheaper loans for the crop. Further, the farmers will also be available at an affordable rate of seven per cent for safe storage of their yield after harvesting. This arrangement will be for six months.
The Government has decided to provide two per cent interest assistance on first year interest on their reorganized debt amount to relieve farmers affected by natural disaster. All these decisions were made in the Cabinet meeting held on Wednesday. The official statement issued after the meeting was mentioned in – The Cabinet has approved the Interest Assistance Scheme for 2017-18, the Government has allocated an amount of Rs 20,339 crore for this.
According to the statement, the debt plays a huge role in securing better agricultural yields and for this, the farmers will not have to hire higher rates from the Mahajans and other sources. The Government’s Prime Minister’s Crop Insurance Scheme is also linked to crop loans, so farmers will get the benefit of both of these schemes launched on behalf of the Government.
The scheme of interest assistance for farmers has been on since 2006-07 and will now continue during the current financial year. During this year, the scheme will be carried out on behalf of Amal National Agriculture and Rural Bank, NABARD and Reserve Bank. Agro loan is usually at a rate of nine per cent, but the government is providing interest support for farmers’ crop loans at a lower rate. The Government has decided to continue two per cent of interest assistance on crop loans even during the current fiscal year, advancing this scheme. This assistance will be available on crop loans up to Rs. three lakh.
