Modi govt planning investment support, interest free-loans in farm package


New Delhi, Jan 22 (IANS): With the BJP losing three Hindi heartland states to the Congress in the recent Assembly elections and general elections around the corner, the Modi government is planning to give a big relief package to distressed farmers, which may include Direct Investment Support (DIS), interest-free loans and nominal premium for crop insurance.

According to sources, the government may implement the farm package in two phases, and the major takeaway is the DIS of up to Rs 15,000 per hectare per year, which will take care of the purchase of inputs like seeds, fertilisers, pesticides, labour.



In the wake of the BJP government's aversion to farm loan waiver, there is said to have been a consensus in the PMO that the DIS through cash transfer annually would relieve farmers from the debt trap, which has also been recommended by the NITI Aayog,

It is on the lines of the DIS schemes such as the Odisha government's KALIA, short for Krushak Assistance for Livelihood and Income Augmentation, and the Telangana government's Rythu Bandhu.

"Agriculture Ministry and the NITI Aayog have made their recommendations. The DIS would be Rs 15,000 per hectare. However, the PMO is expected to make changes till the last moment as this being the year of mega polls," said an official, who wished not to be named.

The official said the DIS plan would lead to an expenditure of around Rs 1.5 to Rs 2 lakh crore.

There are around 13.8 crore farmers in the country and about 86 per cent of them, who have small and marginal landholding, are the likely beneficiaries.

The decision on whether to stop different kinds of subsidies on power, irrigation, fertilisers has not be taken yet as the DIS plan is not to support farmers income but support their investment in cultivation, a source said.

The Modi regime has been facing criticism over its failure to address the issues of falling crop prices, rising input costs and accumulating debt.

Interest-free loans are also on the cards. The Centre pays 2 per cent interest subvention against the base rate of 9 per cent on all farm loans and additional 3 per cent cut in case of loan up to Rs 3 lakh if farmers repay the loan in one year.

The Centre can reduce the remaining 4 per cent as a part of the package, making the loan effectively interest free. The move would cost the government over Rs 20,000 crore.

There could be an increase in the collateral-free loan under the Kisan Credit Card from the existing Rs 1 lakh to Rs 2 lakh.

The government has plans to shell out more money for the procurement scheme to address the issue of the price gap between the market prices and the Minimum Support Prices.

However, it would more likely be a part of the budget, said the source.

The Modi government's flagship crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), may see the premium charged from the farmers going down to nominal, up to Re 1 per acre.

Opposition parties and activists have in the past torn into the scheme saying it benefited private companies more than the farmers.

In the past one year, the national capital alone saw at least five major rallies of farmers, despite the BJP-government coming up with a new price-fixation formula and a score of schemes to impress the tillers of the soil.

  

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Comment on this article

  • gangu, kudla anne

    Tue, Jan 22 2019

    another fake promise b4 2019 election jai ho fkeuuu maharaajjj

    Reply Report Abuse

  • deepak, Mangalore

    Tue, Jan 22 2019

    who gave a statement about this?
    read the article again.
    Its speculation.

    Reply Report Abuse

  • Roshan, Mangaluru

    Tue, Jan 22 2019

    Modi led BJP became the hurdle in counties growth. That is the take away from all that they are speaking off today.

    Modi wanted to thrash Adhar before becoming PM, then changed his mind.
    Modi dont wanted GST, then changed his mind.
    Modi dont wanted NAREGA, then changed mind
    Modi dont wanted toilets, then promoted swatch bharath.

    Modi wanted lokpal. He did nothing.
    Modi wanted to teach Pak a lesson, he did nothing.
    Modi wanted Ram Mandir, he did nothing
    Modi wanted to get rid of reservation, today promoting reservation.
    Modi wanted to bring back all looted money, he did not find it anywhere.
    Modi wanted to bring 2crore a year for youths, in his tenure many even lost the jobs what they have

    The list can go on...

    The term coined by Modi led BJP for guys who mirror the failures is Anti-national. That is the only thing that is experienced under Modi led BJP, by common people.

    Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Jan 22 2019

    FIRST DO IT ...

    Reply Report Abuse

  • mohammed, Mangalore

    Tue, Jan 22 2019

    You are reacting to a speculation.
    Did you even know that?

    Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Jan 23 2019

    Last 5 Years he has only Promised ...

    Reply Report Abuse


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Title: Modi govt planning investment support, interest free-loans in farm package



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