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Revival of Agriculture-Bumper Loan Relief For Farmers Soon

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Good news for agriculture. A minimum of Rs 32000 crore loan is on its way. The announcement is likely to be made in the upcoming budget. It definitely has political motives behind it because this is last budget of the present government.

Whatever is the motive! It is a good news for agriculture sector.

The government is planning the largest farm loan relief package in the country’s history. It would amount to at least Rs. 32,000 crore and proposals to this effect will be announced when the budget is presented on February 29. The total could go up to 90,000 crore.

The package is expected to have several components like a waiver of interest on some loans to the complete writing off of not just stressed assets.

The package is being put together by officials from the ministries of finance and agriculture, the banking regulator, Reserve Bank of India (RBI), and the apex agricultural bank, National Bank for Agriculture and Rural Development (Nabard). But none of them is willing to go on record with the details, given the sensitivity of the subject.

Any package aimed at the agriculture sector has significant political ramifications, especially given that the UPA government could choose to go to the polls before the end of its five-year term.

Source: Hindustan Times

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Tags: loan relief for farmer, nabard, RBI, revival of agriculture