The Hindu Business Line : About 60 lakh AP farmers to benefit from loan waiver

Andhra Pradesh is going to be the biggest beneficiary of the Rs 60,000-crore waiver of farm loans announced by the Finance Minister, Mr P. Chidambaram. The State would account for nearly a fifth of the total amount proposed to be waived.

“About 60 lakh farmers in the State are going to be benefited,” Mr Somayajulu, Advisor to the Chief Minister, told Business Line. The State expected that loans to the tune of Rs 12,000 crore would match the criterion laid down by the Finance Minister.

The State also hoped to get more funds from the AIBP (Accelerated Irrigation Benefit Programme) scheme, funds for which were increased by 81 per cent at Rs 20,000 crore. “As we are undertaking a number of irrigation projects, we could expect a lion’s share from this allocation,” he said. The AIBP allocation would have a grant component of Rs 5,550 crore.

Meanwhile, the State has announced that it plans to reward the farmers on the final produce. Addressing the Assembly here on Monday, Dr Y.S. Rajasekhara Reddy, Chief Minister, said the State would set up an authority to decide on the amount of bonus or incentive to be given to the farmers.

Stating that the total value of the farm produce was put at Rs 33,000 crore, he said the State planned to give at least 10 per cent of this to the farmers.

More Stories on : Budget | Farm credit | Andhra Pradesh

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