Haryana CM announces waiver of interest on crop loans amid farmer agitation

PoliCharcha | Updated: February 23, 2024, 12:59 PM

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Haryana CM announces waiver of interest on crop loans amid farmer agitation

Amidst ongoing farmers’ protest with a demand of legal guarantee of minimum support price (MSP) for the crops, Haryana Chief Minister Manohar Lal Khattar made a bid to appease the farming community by declaring a waiver of interest and penalties on crop loans.

The announcement was made during the presentation of the budget for the fiscal year 2024-25 in the Assembly on Friday.

CM Khattar specified that the waiver would be applicable to farmers registered on the Meri Fasal Mera Byora (MFMB) portal who had availed crop loans up to September 30, 2023, through Primary Agriculture Credit Societies (PACS).

Only those farmers who pay the principal amount by May 31, 2024, would benefit from this scheme. The MFMB portal, used by nearly 10 lakh farmers each season to provide crop details, serves as the registration platform for the waiver.

For the upcoming financial year, Haryana has allocated approximately Rs 7,571 crore to the agriculture and allied sectors, marking a significant increase of 38.9 percent over the revised estimates of the current fiscal year, which stood at Rs 5,449 crore.

Addressing concerns about MSP, CM Khattar emphasised the government's procurement efforts, stating that over the past three years, 14 crops have been procured at MSP, with payments directly credited to farmers' accounts. He assured that the government has provided a safety net to farmers through procurement, price support, and compensation mechanisms.

Highlighting the direct payments made to farmers, Khattar mentioned that Rs 29,876 crore was disbursed into farmers' accounts for the kharif and rabi seasons of 2023, in addition to Rs 178 crore provided under a specific scheme.

The Chief Minister also discussed the Bhavantar Bharpai Scheme initiated in 2018, which initially covered four vegetable crops and has now expanded to include 21 vegetables and fruits. The scheme aims to address price fluctuations by offering incentives to farmers. In 2023-24, Rs 41 crore was disbursed to 6,868 farmers under this scheme.

However, senior farmer leader Gurnam Singh Chaduni criticised the government's approach, claiming that only wheat and paddy are effectively procured at MSP in the state, while sugarcane is purchased at a fair and remunerative price (FRP). He expressed dissatisfaction with the Bhavantar Bharpai Scheme, advocating for MSP implementation across all crops.

Meanwhile, a committee of Congress leaders, led by former Haryana Chief Minister Bupinder Singh Hooda, proposed legal guarantees for MSP and advocated for a complete debt relief and profitability enhancement for farmers during the party's Raipur convention in 2023.

CM Khattar concluded by highlighting the state's agricultural growth rate of 8.1 percent in 2023-24, which he touted as one of the highest in the country, attributing it to various measures undertaken by the government for the welfare of farmers.

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