The Hindu : Kerala / Thiruvananthapuram News : Debt relief for farmers

Online edition of India's National Newspaper
Friday, Jul 21, 2006

Kerala

Kerala - Thiruvananthapuram

Debt relief for farmers

Special Correspondent

THIRUVANANTHAPURAM: Chief Minister V.S. Achuthanandan said on Thursday that urgent measures would be taken for debt relief in the agriculture sector.

In an official release here, the Chief Minister said the proposed Debt Relief Commission, with powers for waiver of loans, would be formed in a few days.

Mr. Achuthanandan noted that Rs.100 crores had been earmarked in the Budget for the Debt Relief Commission and Rs.56 crores for the Agriculture Commission aimed at ensuring stability in prices of agricultural commodities. The Debt Relief Commission would take steps to free the farmers from debt trap.

He said the Commission would have powers to declare a region or crop as distressed. In such cases, it would take steps for debt relief, including loan write- offs. Relief was not to be provided by the Government directly through an executive offer. Instead, farmers in debt trap could approach the Commission for relief.

He added that the Commission would take appropriate steps depending on the nature of the loan, crop loss and the financial position of the borrower. It would try to free the farmers from debt through one-time settlement, interest remission, reduction in payment of principal, declaration of moratorium or loan waiver.

Printer friendly page
Send this article to Friends by E-Mail

Kerala