Andhra earmarks Rs.5,000 crore for crop loan waiver

Andhra Pradesh has allocated Rs.5,000 crore for waiver of crop loans in its budget for agriculture.

Presenting the agriculture budget for 2014-15 in the legislative assembly Friday, Agriculture Minister P. Pulla Rao said despite the revenue deficit, the Telugu Desam Party (TDP) government has allocated the amount to fulfill its poll promise to waive off farmers' loans.

The total outlay for agriculture and allied activities is Rs.13,108 crore, comprising planned expenditure of Rs.6,736 crore and non-plan expenditure at Rs.6,373 crore.

The minister also announced that interest for crop loans between Rs.1 lakh and Rs.3 lakh would be 25 paise if repaid in time. Rao also declared that for crop loans of up to Rs.1 lakh, the government will bear the interest component.

Promising daily nine-hour free electricity supply to farmers instead of present seven-hour supply, he told the assembly that Rs.3,188 crore have been allocated in the budget for this purpose.

The budget proposed that every year 10,000 new solar pump sets will be installed in a phased manner in the next five years.

For 4.04 lakh fishermen community in the state, Rs.60.07 crore has been earmarked.

The agriculture minister said Chief Minister N. Chandrababu Naidu has the vision to make agriculture profitable and sustainable.

This was first agriculture budget of Andhra Pradesh after bifurcation of the state.

Finance Minister Y. Ramakrsihnudu Thursday presented the main budget in the assembly.