Farmers hope for interest-free loans, reforms in agri sector

This would help farmers secure loans against their produce and prevent distress sales.
Farmers hope for interest-free loans, reforms in agri sector
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BENGALURU: With Finance Minister Nirmala Sitharaman to present the Union Budget 2025 on Saturday, farmers across the country are raising their voice for crucial reforms to ensure fair pricing, financial security and protection against agricultural losses.

Their demands before the Central government include an urgent need for policy changes to support the farming sector, which is the backbone of India’s economy. Farmer leader Kurubur Shantakumar, who represents many farmer associations, said, “Farmers are demanding a legally binding law to guarantee Minimum Support Price (MSP) for all agricultural products. Andhra Pradesh passed a similar bill in 2023, and a nationwide law must be implemented to ensure stable and fair prices for all farmers.’’ With unpredictable weather causing massive losses, farmers want insurance to cover all crops, and compensation for natural calamities such as droughts, floods and cyclones.

Farmers are seeking changes in the agricultural loan policy, including loans up to 75 per cent of their land value to ensure financial stability, and interest-free loans of at least Rs 5 lakh without collateral. Sugarcane farmers have specific demands to prevent exploitation by sugar mills: Fair and Remunerative Price (FRP) must be calculated at the farmer’s field, not the mill, ensuring they receive the actual market value.

Sugar mills must stop deducting 25 per cent payment for sugarcane damaged by fire, the farmer leader said. “To provide better financial backing for farmers, a Rs 500 crore revolving fund has been proposed to strengthen the APMC pledge loan scheme.

This would help farmers secure loans against their produce and prevent distress sales. Farmers have urged the government to remove GST on essential agricultural inputs, including pesticides, fertilizers, drip irrigation equipment and tractor spare parts,” Kurubur said.

“There is concern over the sale of low-quality seeds, fertilizers and pesticides, which impact yield. Farmers want the government to implement a non-bailable, strict jail term for individuals and companies selling substandard agricultural inputs.”

Farmers have also requested an increase in the PM-Kisan Samman Nidhi scheme from Rs 6,000 to Rs 20,000 per year, providing better financial support for small and marginal farmers, he said.

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