The Hindu Business Line : Reddy extends credit package benefits to farmers till June-end

EXTENDING further concessions to the farming community, the new Chief Minister, Dr Y.S. Rajasekhara Reddy, has announced extension of validity of the comprehensive cooperative credit package.

In a press release here, the Chief Minister's Office said that Dr Reddy announced the decision while reviewing with the senior State Government officials on the relief and rehabilitation measures for the drought affected farmers.

The key features of the credit package include 100 per cent interest waiver on short-term crop loans on kharif-2002 in drought affected areas, and complete waiver of interest on medium-term and long-term loan instalments of 2002-03 in drought affected areas provided the principal amount was repaid.

The package also includes waiver of up to 3 per cent penal interest on short, medium and long-term loan overdues and further reduction of 3 per cent on overdue loans in all areas of the State. The package also envisages interest rebate of 5 per cent on short-term crop loans of kharif-2002 and on current long-term and medium-term loans of 2002-03 in areas other than those that were drought affected as a measure of relief provided the principal and interest were repaid completely.

According to the CM's Office release, the comprehensive cooperative credit package was in operation till March 31, 2004.

The farming community had already availed itself of interest waiver and remission benefits of Rs 242.3 crore.

However, there have been continued representations from the members of farming community and cooperative societies to extend the cut-off date of repayment of cooperative loans for some more time to enable the stakeholders to get the maximum benefits out of the package.

It was represented that liquidity to farmers should also be available beyond March 2004 to avail themselves of the package.

According to the release, the State Government has carefully and sympathetically considered the representations and has now agreed to extend the validity of the cooperative credit package up to June 30 this year. During the extended period of operation of the package, the framers and members of the cooperative societies would stand to gain to the tune of nearly Rs 108 crore, Dr Rajasekhara Reddy said.

Further, the Chief Minister said the State Government intends that the members of cooperatives and farmers to avail of the benefits fully and remit the dues by taking advantage of the benefits of the package. All functionaries of the cooperative societies were being separately directed to make available the information regarding the outstanding dues and the benefits that would accrue to the farmers out of the package aimed at creating wide awareness.

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