AP CM discusses crop loan waiver with RBI, says will implement scheme

Andhra Pradesh Chief Minister N Chandrababu Naidu today discussed the crop loan waiver issue with RBI Governor Raghuram Rajan over phone and said his government would implement the waiver schemes for farmers "under any circumstances".
Chandrababu said he would have detailed discussions with Union Minister for Finance Arun Jaitley, and if necessary with Prime Minister Narendra Modi, on the issue.
He also discussed the issue with bankers in the state in the evening and subsequently issued a statement saying the loan waiver scheme would be implemented come what may.
"A lot is being said and written about the grave difficulty in writing off loans taken by farmers. I wish to lay all the speculations to rest and reiterate to the farmers' community that we are committed to fulfil the loan waiver promise under any circumstances," Chandrababu said against the backdrop of reports that the RBI was against the waiver fearing that it might "destroy" the financial health of banks.

"Since we have to work within a constitutional framework, it is imperative to consider the designated committee's report, based on which, the government will decide on ways to fulfil the promise," the chief minister said.
Regarding the crop loans for the Kharif season starting July 1, he said the government had already spoken to bankers to make sure fresh loans were made available to farmers by the start of the agricultural activities.

Earlier in the day, Chandrababu called up Rajan over phone and discussed the crop loan waiver.
He reportedly explained to the RBI governor the circumstances in which the TDP had promised waiver of crop loans as the agriculture sector was the worst hit due to vagaries of nature in the state in the last decade.

"There were a series of natural calamities like floods, cyclones, unseasonal rains and drought that left farmers in worst misery. Farmers are in deep distress and hence, moved by their plight, I promised loan waiver during my foot march in late 2012," Chandrababu reportedly told Rajan.