New Delhi, Mar 28 (PTI) The government has not given any farm loan waiver to farmers in the last five years and this year so far, Parliament was informed on Monday.
The government has initiated various steps to ease the debt burden of farmers in the country, Minister of State for Finance Bhagwat Karad said in a written reply to the Lok Sabha.
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"No farm loan waiver scheme has been implemented by the Government of India during the last 5 years and the current year," Karad said.
He was responding to a question asked by All India United Democratic Front (AIUDF)'s Badruddin Ajmal about the amount allocated and spent by the government to waive loans of farmers during the last five years and the current year in the lower house of Parliament.
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The minister said the government has taken several steps to reduce the debt burden of farmers, including direct support of Rs 6,000 per year under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and facility of reduced interest rate on agriculture credit.
Farmers get agriculture credit at a reduced interest rate of 7 per cent. Government implements an interest subvention scheme for short term crop loans up to Rs 3 lakh. Under the scheme, interest subvention of 2 per cent per annum is provided to banks on use of their own resources.
"Besides, additional 3 per cent incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest of 4 per cent," Karad said.
Apart from these, the RBI has issued directions for relief measures to be provided by lenders in areas affected by natural calamities, including restructuring/rescheduling of existing crop and term loans, extending fresh loans, relaxed security margin norms, moratorium etc, he added.
"Loan to distressed farmers indebted to non-institutional lenders is an eligible category of farm credit under the priority sector lending as per directions issued by the RBI.
"Pradhan Mantri Fasal Bima Yojana (PMFBY) provides a comprehensive insurance cover against failure of insured crops due to non-preventable natural risks, thus providing financial support to farmers suffering crop loss/damage arising out of unforeseen events, stabilising the income of farmers to ensure their continuance in farming; and modern agricultural practices," Karad said further.
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