Centre re-introduced UPA Govt.'s interest subvention scheme 'out of fear': Congress

After the Union Cabinet slashed the interest rates on farmers' loans and cleared the interest subvention scheme, the Congress on Thursday called on the Centre to stop fooling the farmers and have a 'reality check' instead.

The Congress further said that Centre took this decision out of fear following the Mandsaur firing, where six farmers lost their lives during an agitation.

"The BJP should stop befooling people and the farmers. They are not providing any extra relief. The interest subvention scheme was introduced by UPA government in 2007-08 which was discontinued by the BJP government in 2017-18 by way of concerted conspiracy. After the Mandsaur firing the BJP government got scared and has now continued this scheme. They are trying to get false credit," Congress leader Randeep Singh Surjewala told ANI.

Surjewala further demanded Prime Minister Narendra Modi's apology for not continuing the scheme.

Another Congress leader Mallikarjun Kharge said, that reducing the interest rate would not be helpful the farmers.

"Reducing the interest rate would not benefit farmers. If the government wants to give respite to the farmers who are committing suicide then they have to waive off the farmers' loan. If they really want to help farmers then they should waive off their loans as UPA government did," Kahrege told ANI.

The Union Cabinet slashed interest rates on farmers' loans by as much as 4 per cent. Earlier the rate of interest was 9 percent which has now been reduced to 5 percent on loan up to Rs 3 lakh limit.

The Centre also cleared the interest subvention scheme for farmers.

The Cabinet also decided that crop loans of up to Rs 3 lakh will be made available to the prompt payee farmers at 4 percent interest rate only.

It also approved the total expenditure of Rs 20,339 crore in the current financial year as Interest subsidy on short-term crop loans.

The Cabinet decision came at a time when the farmers in various parts of India are protesting to get their farm loans waived.