One-time Waiver of Farm Loans

 September 30 2015 at 5:51   213    Loan waiver CM KCR Telangana Farmer Suicide

One-time Waiver of Farm Loans

Amidst mounting criticism from opposition parties over the spate of farmer suicides in Telangana, Chief Minister K Chandrasekhar Rao and Agriculture Minister P Srinivas Reddy dropped enough hints that the government may announce a one-time loan waiver to help beleaguered farmers. Also the government is mulling to extend the enhanced ex gratia of Rs 5 lakh to the kin of all farmers, who ended their lives after June 2, 2014.

Call it a masterstroke by Chief Minister K Chandrasekhar Rao, the proactive approach of the ruling party evoked good response from the opposition and the Assembly saw some constructive discussions on the need to support the farmers.

Srinivas Reddy, who read out a statement on the floor of the House, dropped enough hints about what is in store for Wednesday when the debate will continue. The government had implemented the decision to enhance the ex gratia for farmers’ kin from Rs 1 lakh to Rs 5 lakh with prospective effect, on September 19. As opposition clamoured for ex gratia with retrospective effect, Srinivas Reddy said, “The government is proposing to grant the enhanced ex gratia to all suicide deaths approved by the committee with effect from June 2, 2014”.

He added that the government will consider the demand to release the remaining 50 percent amount for the crop loan waiver in one go. Also, the government may enact  stringent legislation to keep a check on illegal money lending.

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