Wednesday’s Cabinet decision raising the ceiling of relief sanctioned by the Kerala State Farmers’ Debt Relief Commission to Rs. 2 lakh will immensely benefit farmers in the present scenario, according to Agriculture Minister V.S. Sunil Kumar.
The government has also extended the benefit of debt relief to loans taken till December 31, 2014. The earlier cut-off date was December 31, 2011. For farmers in Idukki and Wayanad districts, the cut-off date has been extended from December 31, 2014 to August 31, 2018.
“This ensures that flood-affected farmers in these districts are benefited,” Mr. Sunil Kumar said on Thursday.
ADVERTISEMENT
At present, the benefit of debt relief is applicable only to cooperative bank loans. The State Level Bankers’ Committee (SLBC) has agreed to extend the benefit to loans secured from other banks also. It can be implemented once the State government signs an agreement with the consortium of banks, the Minister said.
Wednesday’s Cabinet meeting had decided to raise the ceiling of relief sanctioned by the debt relief commission from Rs. 1 lakh to Rs. 2 lakh.
The Minister clarified that the government’s intention was not a wholesale write-off of loans. “The aim is to write off those loans that could not be repaid owing to genuine reasons and as per the rules of the debt relief commission,” he said.
ADVERTISEMENT
To meet RBI Governor
The Minister will meet RBI Governor Shaktikanta Das in Mumbai on July 10.
The extension of moratorium on debt recovery on farmers’ loans till December 31, 2019 as well as a possible extension of the deadline for rescheduling of loans will be discussed.