Centres subsidy policy flawed

The leaders of Indian Farmers Movement (INFAM) have alleged that the Union government is following a flawed subsidy policy.

“Though the government has increased the  agriculture loan amount, the farmers in the state are not getting the benefit of the subsidy,” said INFAM national trustee M C George.

The government policy of providing subsidies to only those who avail of loans from public sector banks, is becoming a setback for the farmers, observed the central zone meeting of INFAM. “This amounts to discrimination,” George said.He pointed out that the number of public sector bank branches in rural areas is 216, while that of the private sector branches is 268.

“Since the private sector banks have a better penetration of the agriculture sector, a major share of the farmers do not get the benefit of the subsidy announced by the Union government,” he said. As per the official reports, Rs 36,000 crore has been distributed as agriculture loan and 10 per cent of the loan amount as subsidy. “It is sheer discrimination to deny subsidy to those farmers who depend on private banks,” the meeting observed.