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Posted at: Mar 13, 2018, 7:37 PM; last updated: Mar 13, 2018, 7:37 PM (IST)

Not in favour of farm loan waiver, govt tells Parliament

Not in favour of farm loan waiver, govt tells Parliament
Several measures have been initiated to reduce the debt burden on farmers and increase availability of institutional credit, says MoS for agriculture.

New Delhi, March 13

The government is not in favour of farm loan waiver as it negatively impacts credit and recovery climate, Parliament was informed on Tuesday.

However, several measures have been initiated to reduce the debt burden on farmers and increase availability of institutional credit, Minister of State for Agriculture Gajendra Singh Shekhawat said in a written reply to the Lok Sabha.

"The government is not in favour of loan waiver as it negatively impacts credit and recovery climate and has systematic consequences," he said.

Highlighting steps taken to reduce debt burden on farmers, he said since 2006-07, farm loans up to Rs 3 lakh are provided at a lower interest rate of 7 per cent per annum. Additional interest subvention of 3 per cent is given to those farmers who repay their loan promptly.

This scheme is operational in 2017-18, he added.

Asked about impact of GST on marketing of agri-produce by farmers, Shekhawat in a separate reply said: "There are no reported cases of farmers facing problems regarding marketing of their produce due to GST...." There are also no reported cases whereby benefits of GST have gone directly to manufacturers and dealers, he added.

On transfer of administrative control of Rubber Board to Department of Agriculture, the minister said the cabinet secretariat has decided to maintain status quo.

Department of Agriculture has said it is not justifiable to transfer the functions relating to production, development and domestic marketing in respect of plantation crops from the Department of Commerce to itself, he said. - PTI

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