THIRUVANANTHAPURAM: In a major relief to debt-ridden farmers, the government has raised the upper limit for farmers’ debt relief to Rs 2 lakh. The cabinet on Wednesday gave its nod to make an amendment to the State Farmer’s Debt Relief Commission Act to raise the upper limit of relief for farmers’ debt to Rs 2 lakh from Rs 1 lakh. The cabinet cleared the bill in this regard on Wednesday.
The amendment is being brought in the three sub-sections of Section 5 in the Act. As per the amendment, the commission can provide relief of up to Rs 2 lakh for loans with pending arrears. With the new decision, farmers will get a relief up to Rs 2 lakh for loans taken from cooperative banks. Earlier, the Farmer’s Debt Relief Commission could provide 50 per cent of the repayment amount in arrears above `50,000 and up to `1 lakh. This upper limit has now been pushed to Rs 2 lakh.
In Idukki and Wayanad, loans taken till August 31, 2018 will get debt relief. In other districts, loans taken till March 31, 2014 will be eligible for relief. Speaking to reporters here, state Agriculture Minister V S Sunil Kumar said commercial banks too have taken a favourable stance on the issue. The government decision comes at a time when there is uncertainly over extending the moratorium on loans.