MP Cabinet Approves Rs 2123 cr for Paying Loan Interest of Defaulter Farmers

The Madhya Pradesh cabinet has given its approval to a proposal worth Rs 2,123 crore to waive the interest on loans taken by 11.19 lakh defaulting farmers in the state. The decision was made during a cabinet meeting held on Tuesday. The scheme will include farmers whose total loan amounts, including interest, are under Rs 2 lakh.

Last year, Chief Minister Shivraj Singh Chouhan announced that the state government would deposit the interest accrued on farm loans of cultivators who were unable to repay their loans due to the loan write-off promise made by the previous Congress administration.

The cabinet's approval entails the allocation of Rs 2,123 crore to pay the interest on loans taken by defaulting farmers from cooperative banks and societies, according to an official statement. To benefit from this scheme, the defaulter farmers will need to apply, and the cooperatives will be required to publish a list of eligible individuals on a designated portal.

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Chief Minister Chouhan has previously accused the previous Congress government of not fulfilling their promise of waiving farm loans, which resulted in farmers defaulting on their payments. In response, the Congress party has claimed that approximately 24 lakh farmers in the state have received the benefits of the farm loan waiver scheme implemented during their tenure.

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With this recent approval, the Madhya Pradesh government aims to alleviate the financial burden on defaulting farmers by waiving their accrued interest. The move is expected to provide relief to a significant number of farmers in the state and support their agricultural activities.

Source-PTI

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