Amid widespread farmers’ protests and the debt waiver of agriculture loans in Uttar Pradesh, the Union cabinet headed by Prime Minister Narendra Modi on Wednesday decided to extend the interest subsidy on short-term crop loans given to farmers in the current fiscal. Farmers who repay the loan on time will be provided an interest subsidy of 5%. The interest subvention scheme has been an ongoing programme. The scheme will allow farmers to avail short term crop typically for a period of one year at 4%. “The interest subvention scheme will bring relief to the farmers, especially in a scenario where prices are declining,” Soumya Kanti Ghosh, chief economic adviser, State Bank of India group, told Hindustan Times.

Source: Hindustan Times June 14, 2017 16:29 UTC