The Hindu Business Line : Loan repayment scheme for Wayanad farmers relaxed

THE State Cabinet has decided to effect changes in the scheme for providing concessions in repayment of agricultural loans taken by farmers in Wayanad district from the co-operative sector.

The scheme, announced by the previous government headed by Mr A.K. Antony, provided total waiver of interest for amounts up to Rs 50,000 for three years beginning 2001-02.

Under the new dispensation, agricultural loans above Rs 50,000 will also be eligible for the concession, but with the rider that the interest waiver will be available only for the amount up to Rs 50,000 and interest will be charged for the amount above that level.

Announcing the decision to newspersons after the Cabinet meeting on Wednesday, the Chief Minister, Mr Oommen Chandy, said the scheme would cover five years, instead of three years as of now, between 2001-02 and 2005-06.

He said that he would ask the nationalised and other scheduled banks in the State to follow suit. The Government will approach the Union Finance Ministry and the Reserve Bank to issue necessary instructions in this regard.

The Cabinet has also decided to procure 10,000 tonnes of arecanut as part of the Government's efforts to extend succour to the farmers raising the crop. The farmers will be paid Rs 10 more than the market price per kg of arecanut procured.

Mr Chandy said the current market price was Rs 47 per kg and the procurement would be made at Rs 57 per kg. This would result in an outgo of Rs 10 crore for the Government.

He informed that a similar arrangement would be worked out for coffee and pepper farmers in the State and it would be in place during the season for the crops in November-December.

Another decision of the Cabinet pertains to bringing down the bus fares of the Kerala State Road Transport Corporation (KSRTC) to Sabarimala to normal rates. The corporation had been charging 20 per cent more to the pilgrim centre on the plea that full complement of passengers was limited to only one direction.

The Chief Minister pointed out that the Motor Vehicles Act provided for charging 30 per cent more than the normal fares in such circumstances.

However, the Government had decided to charge only normal fares to Sabarimala in response to demands to the effect from various quarters, he added.