Karnataka   

Union Minister rules out waiving of coffee growers’ loans

Staff Correspondent

Advice: Union Minister of State for Commerce Jairam Ramesh addressing coffee growers in Sakleshpur on Friday.

HASSAN: “No Government, be it the Congress, BJP, JD(S) and BSP will survive if it announces a complete loan waiver and if I make such a remark, I will be making irresponsible statement,” said Union Minister of State for Commerce Jairam Ramesh

Addressing coffee growers at Sakleshpur on Friday after hearing their grievances, he said that loan waiver would destroy banks and destabilise the credit system.

He said that the Coffee Board had submitted a proposal to Union Government to provide 5 per cent subsidy on crop loans to small farmers and 3 per cent to others on crop loans up to Rs. 3 lakh. He said Union Finance Minister P. Chidambaram had fixed 7 per cent interest on loans up to Rs. 3 lakh. In reality, a small farmer would be paying 2 per cent interest on crop loans, he said.

Mr. Ramesh said six districts in Karnataka had been included in the Vidarbha package, including the coffee growing districts of Hassan, Chikmagalur and Madikeri. According to the package, interest accrued up to July 1, 2006 would be waived, outstanding loans would be rescheduled and additional credit for irrigation and infrastructure would be given. Though the package was announced in 2006, it was not implemented in time and just a month ago it was implemented. Banks had waived Rs 170 crore loan interest.

Describing the Vidarbha package as “Hassan package,” Mr. Ramesh said he would bring Reserve Bank of India Deputy Governor to Bangalore in about two weeks and invite representatives of coffee growers for a discussion to ensure that the package is implemented in toto.

“I have already discussed it with bankers in Bangalore and will meet once again,” he said.

Sakleshpur MLA H M Viswanath brought to notice of the Minister the menace by wild elephants in this region.

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