New Delhi Finance Minister P Chidambaram on Friday announced a Rs 60,000-crore relief package for farmers, including complete waiver of loans given to small and marginal farmers.
Presenting his last Budget before the General Elections, Chidambaram announced waiver of Rs 50,000 crore worth of loans to small and marginal farmers and a settlement scheme for other farmers that would cost the exchequer another Rs 10,000 crore.
Loans for marginal farmers holding one hectare land and small farmers holding upto two hectares of land to be waived. Agriculture loans disbursed by rural banks, RRBs and Cooperative banks before March 2007 and overdue on December 2007 will also be waived.
Chidambaram said that according to estimates, three crore marginal and small farmers would benefit from the Government's amnesty.
Under the one-time settlement scheme that will benefit another one crore farmers, the Government will give a rebate of 25 per cent on payment of outstanding loans.
The agricultural credit of scheduled banks is estimated at Rs 2,40,000 crore in the current fiscal and it would go up to Rs 2,80,000 crore in 2008-09.
Implementation of debt waiver and debt relief will be completed by June 30 this year.
The Finance Minister has also announced agriculture credit target to be Rs 2,80,000 crore for 2008-09. The agriculture growth for whole year estimated at 2.6 per cent.
Chidambaram has announced Rs 644 crore for National Agriculture Insurance Scheme, which will be continued pending evolving an alternative crop insurance scheme.
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