Good News! Punjab Government Announces Loan Waiver worth Rs 590 crore for Landless Farmers & Labourers

As per promises made by the Congress government during the 2017 elections, the Punjab CM has announced the waiver of Rs 590 crore worth of loans of approx 2.5 Lakh members of primary agricultural Cooperative societies (PACS), hence ensuring a relief of Rs 20000 per member

The Punjab Chief Minister has announced a waiver of Rs 590 worth of loans under the farm debt waiver scheme for labourer and the landless farming community on July 14, 2021. The cheques would be issued at a state level on August 20, said an official.

A total of 2,85,325 farmers are expected to get the benefit of this scheme , thus ensuring a relief of Rs 20,000 per member. He directed the finance and cooperation departments to start the process for effective implementation of the decision on the ground.

Debt Waiver Scheme

The chief minister’s announcements follow the waiver of the loans of farmers under the CM’s flagship ‘Debt Waiver Scheme’

The Punjab government has formulated a debit Relief Scheme for farm laborers and landless farming members of Primary Agriculture Cooperative societies (PACS), which will cover only consumption loan to the members advanced by district central cooperative banks of Punjab through primary agricultural cooperative societies.

Until now loans of Rs 4,624 crore have been waived off of approx 5 lakh farmers under the scheme, which was announced as a part of the 2017 poll promises by the Punjab Congress.

In addition, loans of the Scheduled Caste and Backward Class categories have been written off up to Rs 50,000 each, including waiver up to Rs 58.39 crore of 6,405 beneficiaries by the Scheduled Caste Corporation and Rs 20.71 crore of 1,225 beneficiaries by the Backward Class Corporation.

About PACS:

PACS are the ground level Cooperative Credit Institutions that provide short term, and medium term agricultural loans to the farmers for the various agricultural and farming activities.

They are multifunctional organizations that dispense a host of activities like banking, on out supplies, marketing produce and trading in consumer goods.