Kerala asks for 5% of agricultural loan relief
Kerala has send across a agricultural loan relief proposal of 3000 crores to central government. In 2008 budget the total money allotted for loan relief by central government is 60,000 crore rupees.
The total agricultural loan of Kerala state is over 17,000 crores. Most of these are given out by public sector banks. Only loans taken before March 2007 are eligible under the relief program.
Editor’s comment: Now suddenly all those farmers who worked hard and paid the loan amount looks like an idiot. This relief plan should have been limited to those who really need it. Blanket loan relief will only promote future loan default. Remember it is hard earned money(taxes) that is given free!
March 15th, 2008 | Agriculture, Government