Moratorium on farmers’ loans extended till Dec 31

Thiruvananthapuram: The state cabinet on Tuesday decided to extend the moratorium on revenue recovery for all loans taken by farmers from public sector, commercial and cooperative banks till December 31. Eight farmer suicide cases – seven in Idukki and one in Thrissur – were reported in the state this year.
Chief minister Pinarayi Vijayan said the decision was taken as an emergency measure to give a breather to farmers facing various troubles such as rain-related havoc, price crash of agri produce, demonetisation and introduction of GST.

“Attempts are being made to address the issue within limited options. The moratorium, now announced, will be applicable to all kinds of loans taken by farmers,” he said.

The cabinet also decided to enhance the limit of financial assistance from the farmers’ debt relief commission from Rs 1 lakh to Rs 2 lakh. The government will also bear 9% interest on new loans taken by farmers for long-term crops for a year. Agriculture and planning departments have been asked to consider bringing commercial banks within the ambit of the debt relief commission.

Vijayan said the cabinet had decided to sanction Rs 85 crore as compensation for crop loss due to natural calamities. Of this, Rs 54 crore will be released from the CM’s distress relief fund. The compensation for pepper, areca nut, cardamom, coffee, nutmeg and clove will be enhanced by 100% from rates last fixed in 2015. Those who suffered crop loss in floods will also be eligible for this assistance.

Agriculture minister V S Sunilkumar was also present.