Daijiworld Media Network- Bengaluru (RJP)
Bengaluru, Oct 1: As a major relief to the farmer fraternity, the state government has decided to write off Rs 296.52 crore interest on the farm loans availed by farmers in the state.
The announcement was made by cooperation minister H S Mahadev Prasad on Wednesday in Bengaluru at a press conference.
The state government also allowed farmers to pay, the instalments of the current financial year loans, in the next year. But the government refused to entertain the demand of writing off of the entire loan. Both these offers apply only to medium as well as long- term loans amounting to Rs 2,300 crore borrowed from cooperative banks by 2.13 lac farmers.
The decision comes in the wake of severe draught faced in 136 taluks of the state and also the series of suicides committed by the distressed farmers.
The minister said that the farmers will not receive any notices either to repay the loan instalment this year or to pay the interest for the current year as he has already instructed the cooperative banks to follow the directives with immediate effect. The writing off of interest effectively means that the government will pay the Rs 296.52 crore interest to the cooperative banks.
Prasad criticized the centre for discrimination against the state. One of its directives forced the state government to withdraw Rs 3000 crore from the apex bank and to invest the same in government securities. Hence the government’s lending capacity took a beating, he said.
He also blamed Nabard bank of reducing its lending from 50 to 40 per cent. The state without any option has decided to transfer Rs 5,000 from other departments to the apex bank, he said.
Prasad revealed that the nationalised banks with total deposits of Rs 5.62 lac crore have lent agriculture loans of Rs 23,000 crore to 21 lac farmers while the cooperative institutions with total deposits of Rs 22,000 crore have lent Rs 9,800 crore agriculture loan.