The Hindu : Front Page : ‘Debt relief for farm sector inadequate’

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Sunday, May 25, 2008
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‘Debt relief for farm sector inadequate’

Staff Reporter

ANANTAPUR: Politburo member and State secretary of Communist Party of India (Marxist) B.V. Raghavulu has observed that the enhancement of the Agricultural Debt Waiver and Debt Relief Scheme, 2008, announced by the Centre on Friday still stops short of reaching the majority of small and marginal farmers in the State and elsewhere in the country. Suggestions made by CPI (M) in this regard were overlooked by Finance Minister P. Chidambaram while announcing the revised guidelines of the debt relief scheme, Mr. Raghavulu said while addressing a press conference here. Though the revised guidelines would help a waiver of Rs.71,680 crore from Rs. 60,000 cr. planned earlier it would still keep about 80 per cent of small and marginal farmers away from the relief, he felt. The guideline that all direct agricultural loans by banks to farmers disbursed between March 31, 1997 and March 31, 2007 and overdue as on December 31, 2007 and remaining unpaid until February 29, 2008 was a bane for farmers in States like Andhra Pradesh where they would invariably go for loans after March, he said. The cut-off date for loans taken, March 31, 2007, was too early and that was why the CPI (M) had suggested it to be July 31.

Similarly, the cut-off date for unpaid loans, February 29, 2008, was also not useful for farmers in State like AP as they would invariably repay loans May-June to seek fresh loans.

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