The decision would provide relief for over 16 lakh farmers
Mumbai : The state cabinet on Tuesday decided to reorganise farm loans amounting to Rs 10,942 crore before this Kharif season. The decision would provide a huge relief to around 16 lakh farmers across the state, minister for cooperatives Chandrakant Patil said.
The cabinet also approved the details regarding implementation of the PM’s crop insurance scheme for this year’s Kharif season, he added.
Farm loans taken in year 2015-16, that would be restructured, amount to Rs 5,000 crore and the State government would also restructure old farm loans for years 2012-13 and 2013-14 amounting to Rs 2,438.98 crore after a nod from the Reserve Bank as the loans were restructured earlier, the minister said.
“The loans would be restructured to be repaid over five years. The government will pay the interest over the restructured loans. Full interest of 12 per cent would be paid for the first year and for the subsequent four years the government will bear half of the interest amount (6%),” Patil said.
“The decision would cost Rs 1,272 crore to the state exchequer and would benefit 11.50 lakh farmers as they will be eligible to avail fresh crop loan for the Kharif season this year. All the farmers who would avail fresh loans this Kharif season would automatically be eligible for the benefits under PM’s crop insurance scheme, which would be an added advantage for the farmers,” the minister added.
The decision covers 15,747 villages which recorded crop yield of less than 50 paise in the 2015 Kharif season and to 11,862 villages in Amravati and Nagpur divisions as well.
State cabinet has also decides to give one more year extension for restructured loan of Rs 3,503 crore for 2014-15 and that the government shall take the interest liability of Rs 36 crore for the same. Replying to queries over credit
extended by registered money lenders to farmers outside their licensed area of operation, Patil stated that amendments to the law are needed to regulate this practice. He added that in the case of similar credits extended by unregistered money lenders to farmers in other areas, the state government settled the claims of farmers in Jalna and Aurangabad.
