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The Government’s decision to waive the loans of farmers has been widely discussed. After going into the details, it does not look so attractive.

Loans taken up to March 31, 2007 and overdue as on December 31, 2007 are eligible for waiver. As such, short-term loans are fully covered.

As regards the long-term loans availed of for agriculture, only the instalments overdue up to December 31, 2007 are eligible for waiver. This means the farmers cannot escape the debt trap.

Therefore, if the scheme is to be more attractive, the whole amount overdue as on December 31, 2007 should be waived. I request the government to look into this.

P. K. Kumaran Thiruvananthapuram

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