Other States

Rajasthan starts giving crop loans

Reward of labour It’s harvest time for this woman in a field near Ajmer in Rajasthan   | Photo Credit: PTI

The Rajasthan government has started disbursing crop loans during the COVID-19 pandemic to the farmers who had availed of the loan waiver in 2018 and 2019 after turning defaulters. The decision is set to benefit over 7.50 lakh farmers who were being denied fresh loans, as their overdue debt had earlier exceeded ₹5,000 each, despite there being no outstanding amount at present.

Cooperative Minister Udai Lal Anjana said here on Saturday that the farmers were being connected with the short-term credit facility and given loans for this year’s kharif crop cycle. The central cooperative banks will give them loans of ₹25,000 each or up to their credit limit, whichever is less.

The loan amount may be increased during the next crop cycles, Mr. Anjana said. A committee has been appointed for bringing the farmers within the purview of the short-term credit security.

The Congress government had announced loan waiver for farmers, shortly after coming to power in December 2018, resulting in the burden of an estimated ₹18,000 crore on the exchequer. The agricultural loans of defaulters up to ₹2 lakh each with the banks were waived with a cut-off date, while there was no monetary ceiling for the cooperative loans.

The previous BJP regime had waived farm loans up to ₹50,000 each obtained from the cooperative banks.

Chief Minister Ashok Gehlot had later stated that the BJP government had paid only ₹2,000 crore to the farmers and left a burden of ₹6,000 crore on his government.

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Printable version | Jul 31, 2021 10:09:01 PM | https://www.thehindu.com/news/national/other-states/rajasthan-starts-giving-crop-loans/article34741146.ece

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