Farm Loan Waiver Announced in Madhya Pradesh and Chhattisgarh

The newly appointed Chief Minister of Chhattisgarh Bhupesh Baghel on 17^th December announced that short-term agricultural loans of farmers will be waived, fulfilling a promise made by the Congress party prior to the recently concluded state assembly elections.

Baghel said short-term agriculture loans of over Rs. 6100 crore of more than 16 lakh farmers taken from cooperative banks and Chhattisgarh Gramin Banks, as on 30^th November 2018 will be totally waived.

The Chief Minister made the announcement while addressing a press conference after chairing the 1^st cabinet meeting of the newly-formed Congress government in Chhattisgarh. He said farmers loans borrowed from commercial banks will also be waived after appropriate assessment.

The minister added that fulfilling another promise made to the farmers, government has decided to hike the Minimum Support Price (MSP) of paddy to Rs. 2500/quintal.

Apart from this the Cabinet took another important decision that a Special Investigation Team will be formed to probe the 2013 ‘Jhiram valley Naxal attack’ in Bastar region in which 29 people including senior Congress leaders lost their lives.

T S Singh Deo and Tamradhwaj Sahu, newly newly-inducted ministers were also present at the press conference.

Prior to the announcement made by Chhattisgarh CM, Kamal Nath, the new Chief Minister of Madhya Pradesh cleared a proposal for writing off farm loans up to Rs 2 lakh. It must be recalled that Congress chief Rahul Gandhi had promised a farm loan waiver in 10 days, if his party comes to power in the state.

Nath while addressing media said, "After taking oath, I have cleared the 1^st file related to writing off farm loans worth Rs two lakh." Soon after this, Principal Secretary of Farmers' Welfare and Agriculture Development Department Rajesh Rajora issued an order in this regard.

The order affirmed, "The MP government has taken a decision to cancel short-term crop loan of eligible farmers up to Rs two lakh as on 31^st March 2018 from nationalised as well as cooperative banks".

The official said around 34 lakh farmers will be benefited from the loan waiver adding that income taxpayers and government employees are not eligible for this.