New Delhi, Nov 13: Deferment of recovery of farm loans by the Centre today is aimed at restoring financial stability of drought stricken farmers so that they are able to repay the debts next year. "We are still working out the amount due from the farmers, realisation of which has been put on hold till at least till June next year," official sources said adding it has not been waived as demanded by certain quarters.
This, however, will lead to more burden on farmers later when current loans again come up for payment with interest, apart from regular loan payments due in 2003, they said. As suggested by commission on agricultural costs and prices (CACP), agriculture ministry had recommended that the interest on all the loans taken in the drought hit Kharif season be waived off which would have cost the exchequer Rs 2,000 crore.
Instead, the government today deferred the payment by farmers, of interest charged and also the principal amount, but stopped short of waiving it due to reservations apparently of the finance ministry, they said.
Similar rescheduling of loans taken by coffee growers has not benefited them much as delayed payment in actual terms means paying of more interest later. The agriculture ministry has also recommended reverting to pre-budget 2002 prices of fertilisers but so far this has not been agreed upon by the government.
Agriculture minister Ajit Singh had said last week, "a Rs 13,500 crore bail-out package has been given for UTI but the drought relief proposals are languishing in the finance ministry". Bureau Report