M A I N   N E W S

PM waives crop loan recovery
Relief for drought-affected farmers
Tribune News Service

New Delhi, November 13
In an effort to reduce the debt burden on the farming community arising from the failure of the South-West monsoon in different parts of the country this year, the Centre has decided not to effect any recovery of crop loan, including interest, during the current financial year.

This will cover the farmers in the affected areas.

“Considering the gravity of the situation, I have decided to provide direct relief to our farmers from payment of crop loans extended to them. The government has, therefore, decided not to effect any recovery of crop loan, including interest, during the current financial year. This benefit will cover farmers in the affected areas, including the plantation sector”, Prime Minister Atal Behari Vajpayee said in a statement issued here today.

While the respective state governments would be taking all possible measures to protect the interests of the plantation sector, the Central Government has now decided to create a corpus of Rs 500 crore, with a substantial contribution coming from the Centre, apart from contribution from state governments and a small contribution from the growers, Mr Vajpayee said in the statement.

“Income from this corpus will be used for providing relief to participating growers when the market conditions are depressed. The details of the scheme will be finalised shortly in consultation with the Finance Ministry. Repayment of loans and interest given to coffee growers is being rescheduled up to a maximum of 11 years”, the statement added.

The Prime Minister said efforts towards modernisation of the processing industry in the plantation sector would get full support from the Central Government.

The government has already released Rs 1186 crore under the Calamity Relief Fund to 14 affected states, apart from 13.25 lakh MT of foodgrains amounting to Rs 1500 crore. “The task force headed by the Deputy Prime Minister is soon to decide further release of funds and foodgrains”, Mr Vajpayee said.

“Effects of the drought will have to be tackled by us with fortitude, prudence and unitedly until at least May/June 2003. The government is determined to do its utmost to minimise the farmers’ difficulties. It is expected that with all these measures, the state governments will also be able to gear up the field level machinery and ensure that benefits reach all farmers”, the Prime Minister said.