To ensure disbursement of farm loans in time to farmers in the ensuing kharif season, the State government on Saturday released Rs 2,190 crore as part of Rs 4,250 crore third installment due for this year under farm loan waiver scheme, launched by the government in 2014. The government so far waived off Rs 8,500 crore loans taken by farmers out of the total Rs 17,000 crore in the last two years. The Chief Minister recently announced that the remaining Rs 8,500 crore loan would be waived in two equal installments in 2016 and 2017.
The officials said nearly 31 lakh farmers would get reprieve from pending loan burden immediately after the release of money to the scheduled banks which offered credit to the farming community every agricultural season. About 2 lakh farmers would not get the benefit of the loan waiver scheme as they had failed to renew farm loans in the banks last year. In some cases, farmers sold out their lands and in some instances, peasants stopped taking loans due to prevailing drought conditions.
The implementation of the loan waiver scheme has been delayed for the last two years due to some administrative problems. In 2014, the loan amount under first installment has been waived in December. Farmers have been freed from debt burden under the second installment in September in 2015. This time, government waived off loans in advance helping farmers to start khariff works early.