In move that seems intended to douse unrest after violence in Mandsaur and farmer protests in Maharashtra, the Centre has increased quantum of its ongoing scheme of cheaper loans for farmers from Rs15,000 crore to Rs 20,339 crore. The Centre also decided to consider payment of pending liabilities of Rs 28,500 crore that will take the total payout to Rs 48,839 crore. This will include Rs 19,685 crore by way of interest subvention (subsidy) in 2017-18, Rs 432 crore for loans against negotiable warehouse supplies, Rs 222 crore for post-demonetisation relief besides the pending liabilities under the short-term loan subvention. The proposal states that the measure is intended to help farmers withstand the pressure of distress sale of their produce by accessing concessional lending where they get short-term loans up to Rs 3 lakh at an interest rate of 4% if they return the amount on time within a year.

In move that seems intended to douse unrest after violence in Mandsaur and farmer protests in Maharashtra, the Centre has increased quantum of its ongoing scheme of cheaper loans for farmers from Rs15,000 crore to Rs 20,339 crore. The Centre also decided to consider payment of pending liabilities of Rs 28,500 crore that will take the total payout to Rs 48,839 crore. This will include Rs 19,685 crore by way of interest subvention (subsidy) in 2017-18, Rs 432 crore for loans against negotiable warehouse supplies, Rs 222 crore for post-demonetisation relief besides the pending liabilities under the short-term loan subvention. The proposal states that the measure is intended to help farmers withstand the pressure of distress sale of their produce by accessing concessional lending where they get short-term loans up to Rs 3 lakh at an interest rate of 4% if they return the amount on time within a year.