NO RECOVERY OF
CROP LOAN DURING THE CURRENT FINANCIAL YEAR : PM
The Government has
decided not to effect any recovery of crop loan, including interest,
during the current financial year. This benefit will cover farmers
in the affected areas. An announcement to this effect was made
by the Prime Minister, Shri Atal Bihari Vajpayee in a statement
on the drought situation in the country, here today.
Following is the
text of the statement by the Prime Minister :
"The Government of
India has been taking urgent steps to deal with the grave problem
arising from failure of South-West monsoon in different parts
of the country during this kharif season. We have already released
Rs. 1186 crores under Calamity Relief Fund to 14 affected States,
apart from 13.25 lakh MT of foodgrains amounting to Rs. 1500 crores.
Substantial advance releases have also been made under Rural Water
Supply Programme and Sampoorna Gramin Rozgar Yojana.
The Task Force headed
by the Deputy Prime Minister is meeting soon to decide further
release of funds and foodgrains.
In the meantime,
considering the gravity of the situation, I have decided to provide
direct relief to our farmers from payment of crop loans extended
to them. The Government has, therefore, decided not to effect
any recovery of crop loan, including interest, during the current
financial year. This benefit will cover farmers in the affected
areas, including the plantation sector.
While the respective
State Governments would be taking all possible measures to protect
the interests of plantation sector, the Central Government has
now decided to create a corpus of Rs. 500 crores, with a substantial
contribution coming from Government of India, apart from the contribution
from State Governments and a small contribution from the growers.
Income from this corpus will be used for providing relief to participating
growers when the market conditions are depressed. The details
of the scheme will be finalised shortly in consultation with the
Finance Ministry. Repayment of loans and interest given to coffee
growers is being rescheduled upto a maximum of 11 years.
I want to emphasise
that efforts towards modernisation of the processing industry
in the plantation sector would get full support from the Central
Government.
Effects of the drought
will have to be tackled by us with fortitude, prudence and unitedly
until at least May/ June 2003. The Government of India is determined
to do its utmost to minimise the farmer’s difficulties. It is
expected that with all these measures, the State Governments will
also be able to gear up the field level machinery and ensure that
benefits reach all the farmers".
