Tamil Nadu - Nagapattinam   

`Relief on loans will not benefit farmers'

Staff Reporter

NAGAPATTINAM: The Chief Minister's announcement in the Assembly yesterday regarding the relief on long-term borrowings from the Primary Agricultural Co-operative Banks (PACBs) will not benefit the farmers, said K.G. Krishnamoorthy, a progressive farmer of Mayiladuturai and vice-president of the Composite Thanjavur District Farmers Association comprising the present Thanjavur, Tiruvarur and Nagapattinam districts.

Mr. Krishnamoorthy told The Hindu today that the Government had announced that for the loans, which became Non Performing Assets (NPAs) as on March 31, 2001, the farmers would have the benefit of their interest written off after March 31, 2001 if they paid the principal and interest up to March 31, 2001.

He said that he had clarified with a top official of the Kumbakonam Central Co-operative Bank that the farmers could get the benefit if they paid it before June 30 this year as there was no mention about the last date of payment.

Mr. Krishnamoorthy said that the concessions announced by the Government would not benefit the farmers stating that for a loan to become an NPA as on March 31, 2001, the borrowings should have been made before March 31, 2000.

He said that manyfarmers availed the loans only after March 31, 2000. Hence, they would not be eligible for concession of write off interest even if they repaid the loans now, he said.

He urged the Government to convert all loans availed by farmers up to March 31, 2004, into long-term loans of six years after writing off the interest up to March 31, 2004, and the farmers should be allowed to repay the loans in six years from March 31, 2007, after giving a moratorium of three years.

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