Officials and bankers asked not to serve notices on farmers
Andhra Pradesh Chief Minister N. Chandrababu Naidu spoke to Reserve Bank of India Governor, Raghuram Rajan, on Wednesday and explained to him the circumstances under which the State Government decided to waive crop loans.
Later in the day Mr. Naidu reportedly followed it up with a letter. He is believed to have told Mr. Rajan that the decision was aimed at bringing farmers from out of woods as farming sector was in deep crisis during the last decade. Farmers were adversely affected by vagaries of nature, increase in prices of various inputs like seeds and fertilizer. The Government cannot shirk its responsibility of rescuing the farmers when they were in crisis. If Government fails to intervene, farmers would lose confidence and this would ultimately reflect on food production, he added. Sources in the Chief Minister’s Office said Mr. Naidu impressed upon the RBI Governor to extend his cooperation to AP Government in ameliorating the lot of the farmers.