Himachal govt starts Agriculture Loan Interest Subvention Scheme
Shimla, June 27
In a major relief measure for farmers facing financial distress, the Himachal Pradesh government on Saturday announced the launch of the Agriculture Loan Interest Subvention Scheme with a one-time settlement policy, fulfilling a key budget announcement.
The scheme would assist farmers whose agricultural land is at risk of auction due to loan defaults. Under this farmer-centric initiative, the government would bear 50 per cent of the outstanding interest liability on agricultural loans up to Rs 3 lakh per farmer.
An estimated 6,356 farmers across the state are expected to benefit from the scheme, with a financial outlay of Rs 50 crore. The scheme would be implemented through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank.
The branches concerned will identify and prepare a list of eligible borrowers to avail of the interest subvention benefit.
Chief Minister Sukhvinder Sukhu said that farmers were the backbone of the state's economy, and their welfare remained the government's foremost priority.
He added that many farmers have been facing financial challenges due to adverse circumstances, and the government therefore decided to extend this one-time support to eligible beneficiaries.
The scheme would cover farmers whose agricultural loans have become overdue and whose landholdings are under threat of auction by financial institutions.
By sharing half of the outstanding interest burden, the government aims to facilitate loan regularisation, ease financial stress and enable farmers to continue their agricultural activities without fear of losing their land.
The Chief Minister has directed the departments concerned and financial institutions to ensure the expeditious implementation of the scheme so that deserving farmers receive timely assistance.
Reaffirming the government's commitment to the farming community, the Chief Minister said every possible effort is being made to protect farmers from economic hardship and strengthen the agricultural sector for sustainable growth.
— IANS
Reader Comments
Ek aur vote bank politics! Rs 50 crore for just 6,356 farmers? That's peanuts for a state. Meanwhile, our apple growers in Shimla are still waiting for better MSP and market access. This is just a band-aid on a deep wound of agrarian crisis. Need structural reforms, not one-time sops. 😒
This is a thoughtful move by the Sukhu government. Our farmers are the real backbone of Himachal's economy and they've been suffering due to erratic weather patterns and poor returns. However, I'd like to see how transparently the beneficiary list is prepared. Let's hope there's no corruption in implementation.
As someone who's lived in the US and now farms near Palampur, this is a step in the right direction. But the Rs 3 lakh cap seems too low considering input costs. Our family spent over Rs 4 lakh on apple orchard maintenance last season alone. Still, it's better than nothing, and I appreciate the intent.
Bhai, but what about the farmers who have already lost their land to banks? Why no retrospective relief? Also, the government should focus on improving irrigation facilities and providing subsidised seeds instead of just waiving interest. Aar ya paar nahi hona chahiye kisanon ke saath. 🚜
Very happy to see this scheme! My father is a small farmer in Kangra and his loan interest was killing us. But the real test will be how quickly the banks process these applications. In Himachal, paperwork can take ages. Hope the CM's directive speeds
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