UP government waives off crop loan; banks may bear the brunt
- Author: Leroy Wright Apr 06, 2017,
Apr 06, 2017, 8:56
The Tamil Nadu high court has already asked the state government to waive of farmer loans taken from cooperative banks by rich farmers.
Experts believe that whereas loans of around Rs 9,500 crore availed by farmers from cooperative banks could be taken over by the state government easily, the real challenge would be dealing with loans taken from nationalized banks. The total cost to the State exchequer would amount to Rs. 36,000 crore.
The waiver has been described as "good politics but poor economics" since it rewards defaulters and disincentivises farmers who have been paying back the loan. The move will benefit over 2.15 crore farmers, besides 7 lakh others who had secured loans which turned into non- performing assets (NPAs).
"The promise was to waive off the all the debt of marginal and small farmers of the state", he said.
The announcement came in the first Cabinet meeting of the new Yogi Adityanath government held on Tuesday.
The waiver applies to loans taken by these farmers against seeds for wheat and paddy crops, as well as pesticides and fertilizers.
Buffalo and goat slaughterhouse owners had alleged that the government was forcing all of them to shut their units. "The innocent would not be harassed and the guilty must not be spared", Sharma said. Farmers of the state will also get Rs 10 more than the minimum support price per quintal, the government announced.
Maurya will head one more committee of three members to report within a week how to check illegal mining.
For improving the healthcare facility in rural areas, the Chief Minister also urged the medical students to practice in villages for at least two years after completing their MBBS.
The circular carrying the signature of Urmila Singh, the joint director of higher education, says bio-metric systems will be installed in all government colleges to mark attendance and ensure timely and transparent working.