The state government of Uttar Pradesh is going to launch a new scheme named as “Krishi Rin Mochan Yojana” as a farm loan waiver scheme for farmers. The chief minister of UP had approved the waiver of farm loans up to Rs. 1,00,000 for small and marginal farmers in month of April this year.
During the launching of Krishi Rin Mochan Yojana, the union home minister had distributed around 7,500 certificates to small and marginal farmers at program. This scheme will cover those farmers who has taken crop loan from banks for procurement of seeds, pesticides and fertilizer in financial year 2015-16.
According to the official data, there are around 23 million farmers in UP, out of this 92.5 per cent or roughly 21.5 million belongs from the small and marginal category across the state. Due to natural calamities, most of these farmers were unable to repay loans.
Krishi Rin Mochan Yojana
The government has targeted to provide the benefit of crop loan waiver for around 8.6 million farmers throughout the state. So far, the govt. has identified about 7 million farmers, remaining will be verified soon, by the official data.
In their respective districts, the state ministers will distribute certificates of the scheme that will start from September 5. For this scheme, the state govt. has already allocated Rs. 36,000 crore in their annual budget.
It should be noticed here that to leverage the benefit of loan waiver scheme, the farmers has to register the Aadhar card with the bank account and verify it. In second phase of this scheme, the state government will cover all the farmers who have been left due to any reason.
In India, agriculture sector have been facing many issues like depleting water level, fragmentation of land, rising input costs, deteriorating soil quality etc. and the output price of productivity may not be profitable. To survive and manage the expense, the farmers are often forced to borrow money from banks and private lenders at higher rates.
Due to indebtedness, many farmers are committing suicide throughout the country.The scheme of loan waivers would provide some relief to farmers in such situations.