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LATEST NEWS UPDATES | No farm loan waiver, Maharashtra may opt for subsidies to farmers for installing infra facilities -Krishna Kumar

No farm loan waiver, Maharashtra may opt for subsidies to farmers for installing infra facilities -Krishna Kumar

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published Published on Apr 18, 2017   modified Modified on Apr 18, 2017
-The Economic Times

MUMBAI: Bucking the trend of farm loan waivers set in motion by Uttar Pradesh, the Maharashtra government has decided a better option would be to give subsidies or grants to farmers for installing infra facilities at their farms to boost efficiency by easing input costs.

“We are currently working on a policy whereby it would give grants or subsidies to farmers for say laying a network of pipelines for drip irrigation, or for any other project that boosts farm efficiency. This would also involve seeds and fertilizers. Basically, we are looking at the farmer having no input cost,” a top state government official told ET.

One of the things being discussed is to give a guaranteed price for the farm produce.

“A farm loan waiver will mean a burden of around Rs 30,000 to Rs 35,000 crore for the state, while the loan that he owes to the banks is waived off, the farmer gets nothing, and here, what we are saying is that we can help him build a system to ensure that he is able to stand on his feet-,”said a state government official.

“Once we pay up the Rs 35,000 crore to banks to waive off the farmers loan, there would be absolutely no money left with us to build any capital intensive project for the farmers We would struggle to pay for ongoing irrigation projects. Not just for the farmers, there would be no money even to do any big infrastructure project anywhere in the state,” said the official.

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The Economic Times, 17 April, 2017, http://economictimes.indiatimes.com/news/politics-and-nation/no-farm-loan-waiver-maharashtra-may-opt-for-subsidies-to-farmers-for-installing-infra-facilities/articl


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