NEW DELHI: Finance Minister P Chidambaram on Wednesday said “every” suggestion made on the ambitious farm waiver scheme is under examination. He said he will discuss the implementation of the scheme with the CEOs of state-owned banks in his meeting on May 1.
“Every suggestion is under examination,” he said replying supplementaries in the Lok Sabha on the farm loan waiver scheme. Members had asked the minister whether the government was considering seeking increasing the land holding limit from two hectares to five hectares for farmers to be eligible for the scheme.
“I can only do what is doable and affordable,” Mr Chidambaram said in reply to demands from several members to consider extending the scheme to farmers with landholdings up to five hectares. “The loans will be waived by June 30, 2008,” he said.
On concerns that banks were not sanctioning loans to farmers citing the scheme, Mr Chidambaram said the banks were being sensitised on the matter. The minister said he has convened a meeting of chairmen and managing directors of all banks in the first week of May to discuss writing off agricultural debts. Mr Chidambaram said that the RBI guidelines on the loan waiver were being formulated.
It may be pointed that Agriculture Minister Sharad Pawar had on April 21 ruled out taking “new responsibilities” like increasing the coverage of farm loan waiver scheme until the present package to write off Rs 60,000 crore agriculture debts is implemented.
Days after the budgetary announcement, Congress General Secretary Rahul Gandhi had specifically suggested that there should not be one landholding ceiling nor should there be a single cut-off date.
The government is also working on expanding the national crop insurance scheme which was introduced by the previous NDA government. Mr Chidambaram said that the agriculture ministry and the Planning Commission are yet to agree on the modifications for the insurance scheme. He said that the government was ready to fund the scheme as soon the Ministry of Agriculture and the Planning Commission agree on the modifications.
“If we receive a modified scheme government will be ready to fund it,” he said intervening in the debate on Finance Bill in the Lok Sabha and added “we want to move from large unit to small unit under the crop insurance.”
A member of the opposition party alleged that though government had announced Rs 60,000 crore farm loan waiver in the budget, yet it was not ready to provide about Rs 10,000 crore for the national crop insurance.
The crop insurance, if implemented at the village level, could save the lives of thousands of farmers who were forced to commit suicide every year due to failure of crop, he said. There were suggestions that the village should be made the unit area under the crop insurance scheme as against the block as per existing rules.
“Every suggestion is under examination,” he said replying supplementaries in the Lok Sabha on the farm loan waiver scheme. Members had asked the minister whether the government was considering seeking increasing the land holding limit from two hectares to five hectares for farmers to be eligible for the scheme.
“I can only do what is doable and affordable,” Mr Chidambaram said in reply to demands from several members to consider extending the scheme to farmers with landholdings up to five hectares. “The loans will be waived by June 30, 2008,” he said.
On concerns that banks were not sanctioning loans to farmers citing the scheme, Mr Chidambaram said the banks were being sensitised on the matter. The minister said he has convened a meeting of chairmen and managing directors of all banks in the first week of May to discuss writing off agricultural debts. Mr Chidambaram said that the RBI guidelines on the loan waiver were being formulated.
It may be pointed that Agriculture Minister Sharad Pawar had on April 21 ruled out taking “new responsibilities” like increasing the coverage of farm loan waiver scheme until the present package to write off Rs 60,000 crore agriculture debts is implemented.
Days after the budgetary announcement, Congress General Secretary Rahul Gandhi had specifically suggested that there should not be one landholding ceiling nor should there be a single cut-off date.
The government is also working on expanding the national crop insurance scheme which was introduced by the previous NDA government. Mr Chidambaram said that the agriculture ministry and the Planning Commission are yet to agree on the modifications for the insurance scheme. He said that the government was ready to fund the scheme as soon the Ministry of Agriculture and the Planning Commission agree on the modifications.
“If we receive a modified scheme government will be ready to fund it,” he said intervening in the debate on Finance Bill in the Lok Sabha and added “we want to move from large unit to small unit under the crop insurance.”
A member of the opposition party alleged that though government had announced Rs 60,000 crore farm loan waiver in the budget, yet it was not ready to provide about Rs 10,000 crore for the national crop insurance.
The crop insurance, if implemented at the village level, could save the lives of thousands of farmers who were forced to commit suicide every year due to failure of crop, he said. There were suggestions that the village should be made the unit area under the crop insurance scheme as against the block as per existing rules.
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