Madhya Pradesh Chief Minister Shivraj Singh Chouhan launched a campaign on Monday, May 15, 2023, supporting farmers in the state. An outstanding amount of loan interests against them will be waved off ahead of state elections later this year.
The Chief Minister Farmers' Interest Waiver Scheme-2023 initiative will commence from Kerbana village in Sagar district, where the chief minister will start receiving applications from farmers who have defaulted on loans.
The scheme is expected to benefit over 11 lakh farmers, with a waiver amounting to over ₹ 2,200 crores.
As per the media reports, the Chief Minister said that with the state government paying interest, the farmer brothers and sisters won't be referred to as defaulters.
The committee will also provide them with certifications that are default-free. The farmers will be eligible for the scheme at a zero percent interest rate enabling them to access fertilizers and seeds from agricultural societies that had halted the supply to the defaulters.
At this point, the government steps in to provide some assistance to the farmers.
The interest will be waived off for defaulting farmers who are members of Primary Agricultural Credit Societies, associated with District Cooperative Central Banks, and whose total outstanding loan balance, interest included, as of March 31, 2023, was up to 2 lakh.
Additionally, short-term loans for crops and short-term loans that have been converted into medium-term loans have also been included in the scheme.
The state government will reimburse the waived interest.
