MP to provide loans to farmers at 1% interest rate

Last Updated: Saturday, January 15, 2011 - 22:21

Bhopal: In the wake of reports of farmers
committing suicides in Madhya Pradesh due to crop failure and
mounting debts, Chief Minister Shivraj Singh Chouhan on Saturday
announced that the state will give loans to farmers at one per
cent interest rate from next fiscal.

"Madhya Pradesh will be the first state in the country to
provide loans to farmers at one per cent interest rate from
the next financial year," Chouhan said in a meeting with
farmers` delegation at his residence here.

The Chief Minister also announced that from now on,
compensation will be given "crop-wise".

For instance, for tuar and vegetables, the farmers will
get a compensation of Rs 11,000 per hectare if crop is
damaged, while for a fruit-bearing tree, it will be Rs 350
apiece.

The government has also decided to waive interest on
loans to farmers for the current year, while it will be three
per cent on the existing loans from the next year, he said.

As to the loans given by unlicensed money-lenders, he
said that those who try to recover dues forcibly from the
farmers will be "sent to jail".

The government is going to fix the rate of interest for
the loans offered by the licenced money-lenders.

PTI



First Published: Saturday, January 15, 2011 - 22:21

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