However, it has set not any deadline for the high-level committee, headed by the Additional Chief Secretary (Finance), to submit its report.
A Government Resolution (GR) issued on May 11 said that due to drought conditions, natural calamities and other reasons, farmers are left unable to repay their loan, and on defaulting, become ineligible for a fresh agricultural loan.
There are around over 27 lakh farmers who are still out of the institutional credit system and such farmers need to be brought back to the credit system, it said.
The committee has General Manager Reserve Bank of India,; Additional Chief Secretary (Planning); Principal Secretary of Agriculture, Divisional Commissioner of Pune; Cooperation Commissioner and Registrar Cooperative Societies, Chief General Manager NABARD and others as its members.
During the recent budget session of the state legislature Chief Minister Devendra Fadnavis had said that the government also wanted to put in place a system for 1.34 crore account holder farmers, who regularly repaid loans.
He had said that the government will have to bear a burden of Rs 30,500 crore if it waives loans of 31 lakh farmers.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)