Jul 14 2014 : The Times of India (Delhi)
`Slash loan interest rate to cut farmer suicides'
Amaninder.Sharma@timesgroup.com
|
Patiala: To arrest the menace of farmer suicide, Punjab government's expert committee has suggested slashing of interest rates on loans to half, at 2% per annum as a solution. Over 6,000 farmers and farm labourers ended their lives in the state between 2001 and 2010.Admitting that Punjab agriculture is facing a “crisis, both in terms of economic and environmental viability“, it is for the first time that any government-constituted expert panel has sought loan facility to farmers at such a low rate of interest.
TOI is in possession of the committee's draft report.
However, rate of interest charged by private moneylenders is as high as 12-18% per annum. Due to easy availability and various economical compulsions, most farmers prefer to take loan from private moneylenders.
As per norms, the total rate of interest on farm loan is 7% per annum, of which farmers pay 4% and rest is paid by the Government of India in the form of subsidy . The condition is that maximum cap of loan amount should be Rs 3 lakh and should be paid within the specified time.
The committee has also demanded that the Centre increase its subsidy from 3% to 5%.
Not only agriculture loan, the panel has also recommended reduction of interest rate on investment loan to 6% for farmers.
It is now available at around 12%.
The committee was constituted by the Punjab government to propose a framework for its agriculture policy , which the state has to submit to Punjab and Haryana HC next month.
A survey conducted by three state universities revealed that 6,128 suicides were committed by farmers and farm labourers during 2000-2010 in the state, out of which 4,686 suicides were due to debt.
TOI is in possession of the committee's draft report.
However, rate of interest charged by private moneylenders is as high as 12-18% per annum. Due to easy availability and various economical compulsions, most farmers prefer to take loan from private moneylenders.
As per norms, the total rate of interest on farm loan is 7% per annum, of which farmers pay 4% and rest is paid by the Government of India in the form of subsidy . The condition is that maximum cap of loan amount should be Rs 3 lakh and should be paid within the specified time.
The committee has also demanded that the Centre increase its subsidy from 3% to 5%.
Not only agriculture loan, the panel has also recommended reduction of interest rate on investment loan to 6% for farmers.
It is now available at around 12%.
The committee was constituted by the Punjab government to propose a framework for its agriculture policy , which the state has to submit to Punjab and Haryana HC next month.
A survey conducted by three state universities revealed that 6,128 suicides were committed by farmers and farm labourers during 2000-2010 in the state, out of which 4,686 suicides were due to debt.
