The Hindu Business Line : Incentives for prompt loan repayments suggested

Coimbatore, March 2 While hailing the debt waiver and debt relief provided for the farmers in the Union Budget, the All India Co-Operative Bank Employees’ Federation suggests that the Government also consider providing relief to the borrowers who have been prompt in repaying their dues.

‘Such a signal would motivate the borrowers to be prompt in remitting their dues. The Tamil Nadu Government provided such a relief to the farmers who had been prompt in their repayment, after the introduction of the scheme of farm loan waiver in May 2006,’ the AICBEF General Secretary, Mr P. Balakrishnan, said.

Sources close to the development also noted that loan waivers alone would not help farmers. ‘Farmers can benefit only if they have quality and timely inputs such as seeds, manure/fertiliser at cost-effective rates.’

Stressing the need for an Agricultural Infrastructure Development Fund, he said ‘The NDA Government in its 2004 mid-term budget mooted an Agricultural Infrastructure Development Fund and allocated Rs 15,000 crore.

The UPA Government has allocated Rs 10,000 crore towards the Rural Development Infrastructure Fund of which Rs 4,000 crore is for road projects. A separate fund for agriculture infrastructure development would be more focused and serve the purpose,’ he added.

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