Modi announces interest waiver for farmers

In a major relief for farmers in Gujarat, chief minister Narendra Modi has announced a interest waiver of farm credit obtained for kharif crop, which failed due to delayed rains. Modi also announced relief in electricity bills for agriculture use for farmers up to 50 per cent.

Announcing the relief measure on Thursday, Modi mentioned that about 1.4 million farmers had taken farm loans worth Rs 7000 crore for the kharif crop. "The state exchequer will bear the burden of around Rs 300 crore of interest waiver on farm loans," he announced.

Since there was a delay in rain, the Kharif cultivators have suffered loss this year, the a state government statement quoted Modi as saying. The state government has decided to free them from the burden of paying interest on the Kharif loans availed till August 15, 2012. The state government will bear the burden of Rs 300 crore.

 

The state government already provides Rs 3000 crore subsidy for farmer electricity bills, which is highest in the country. The chief minister also mentioned that the farmers do not get fresh loans if they fail to repay it in due time. Gujarat farmers have already suffered loss due to delayed rain and are now unable to repay their loans in due time. He also urged the Centre to increase the loan repayment period by one year for Gujarat farmers.

Modi was speaking at a public meeting organised as part of the month-long Swami Vivekananda Yuva Vikas Yatra at Unai in Navsari district.