#ekgaon agriculture banks loan MSP

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#11 - Saving farmers from debt trap, new hope for farmers in Uttar Pradesh, a small step for solving a big problem

New Hope for farmers in Uttar Pradesh   Photo Credit: Vijay Pratap Singh Aditya

The new UP government’s decision to increase wheat procurement target by more then double (2.6 times) from 30 MT (2016) to 80MT (2017), by establishing 7000 new procurement centres, is a phenomenal gesture to help secure livelihood of heavily indebted farmers in the state at the MSP of Rs 1,625 per quintal. This targeted procurement could help bringing more number of farmers in safety net of minimum support price.

Along with the loan waiver of Rs. 30,729 crore benefiting 2.15 crore farmers (upto one lakh, of small and marginal farmers, constituting 92.5 per cent of UP's farmers) and another waiver to 7 lakh farmers who had secured loans which turned into non- performing assets (NPAs) of Rs 5,630 crore; would in a long run create a more healthy environment for bringing about fundamental changes in agriculture of the state.

Although the election promise was to waive off 100% of the loan of small and marginal farmers, even the current step (waiving only upto 1 lakh of loan amount) could be a transformative step for agriculture in Uttar Pradesh. It should be noted that the total outstanding debt of farmers in UP is around 92,000 crore. The twin loan waiver schemes would reduce the total debt burden of farmers by 39%. Hopefully pending dues of sugarcane farmers would also be looked into.

Loan waivers and increased procurement target would give additional cash in the hands of the farmers to settle pending loan dues, before the coming Kharif season.

Looking forward to more update on agriculture policy in my home state.

References:

'Promise Met', Says Team Adityanath, Waiving Farm Loans In First Cabinet Meet: 10 Points

All India | Reported by Rahul Shrivastava, Edited by Raija Susan Panicker | Updated: April 04, 2017 22:17 IST

http://www.ndtv.com/india-news/yogi-adityanaths-first-cabinet-meeting-begins-15-days-after-he-took-oath-10-points-1677269?pfrom=home-lateststories

Yogi Adityanath govt waives off Rs 36,359-crore loan for UP farmers, Akhilesh not impressed

India Updated: Apr 05, 2017 00:43 IST  Umesh Raghuvanshi  Hindustan Times, Lucknow

http://www.hindustantimes.com/india-news/yogi-adityanath-s-govt-announces-rs-30-729-loan-waiver-for-up-farmers-akhilesh-not-impressed/story-nWV0chIoRqajZB4oGv6a6L.html