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Maharashtra waives interest on farmers loans

In a major decision to provide succour to the farmers in the scarcity-hit areas of the state, the Maharashtra government has decided to completely waive off the interest amount on loans taken by them, Chief Minister Manohar Joshi said in Bombay today.

Talking to reporters after the daily cabinet briefing, Joshi said approximately 2 million farmers in 20,545 villages of Vidarbha and Marathwada will benefit from this decision, and added that the total interest amount per year was Rs 420 million while the loan amount was Rs 2.8 billion.

He said the loan amount would be rescheduled in which the government share is 15 per cent, amounting to Rs 420 million. The guarantee on 60 per cent provided by NABARD will be given by the state government, he added.

He said there were continuous complaints from Yavatmal in Vidarbha region, that no relief was provided to the farmers whose cotton crop was infected with disease. A decision would be taken within a couple of days on measures to provide relief to such farmers. There had been no previous instance of giving compensation to farmers whose crops have been damaged due to disease, he stated.

The chief minister said the government has initiated a new scheme worth Rs 450 million for farmers whose crop suffered more than 50 per cent damage in the hailstorm and excessive rains between January and March 1998. For the ensuing kharif season, free seeds up to Rs 500 per hectare, and a maximum of up to two hectares, would be given to farmers for sowing. About 2 million farmers would benefit from this scheme, he added.

UNI

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