(a) whether the Government proposes to grant any direct financial package to sugarcane
farmers in order to free them from the burden of debt and enable them to adopt modern farming
techniques;
(b) if so, the details thereof;
(c) if not, the reasons therefor; and
(d) the reaction of the Government thereto?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)
(a)to(d):A scheme of debt waiver and debt relief for farmers including sugarcane farmers
announced by the Government in the Union Budget 2008-09 is under implementation.
This scheme is applicable to all farmers including sugarcane farmers in the country.
Direct agricultural loans disbursed by scheduled commercial banks, regional rural banks
and cooperative credit institutions up to March 31,2007 and overdue as on December 31,
2007 which remained unpaid until February 29, 2008 are eligible for debt waiver or debt
relief as the case may be.
In case of marginal and small farmers, the entire eligible amount has been waived.
In the case of other farmers, there is a one time settlement (OTS) Scheme under which
the farmer is to get a rebate of 25 per cent of the eligible amount subject to the condition
that the farmers pays the balance of 75 per cent of the eligible amount.
Agricultural loans restructured and rescheduled by banks in 2004 and 2006
through special packages and other loans rescheduled in the normal course as per RBI
guidelines are also eligible either for a waiver or an OTS on the same pattern.