Assam government announces freebies for farmers

Guwahati, December 17, 2018:

Farmers in debt in Assam may now have reasons to smile. The state government has come up with three schemes to give relief to them.

The government on Wednesday announced the Assam Farmers’ Credit Subsidy Scheme, Assam Farmers’ Interest Relief Scheme and Assam Farmers’ Incentive Scheme to give succour to the farming community, including small tea growers and rubber planters.

Finance Minister Himanta Biswa Sarma said the schemes would cover 27 lakh agricultural households in 26,000 revenue villages.

“Under Assam Farmers’ Credit Subsidy Scheme, the state government has decided to reimburse 25 per cent of the money a farmer paid to the bank against a farm loan. If a farmer took a loan of Rs.1 lakh and repaid Rs.25,000 so far and if he repays another Rs.50,000, the government will then pay the remaining Rs.25,000. The upper cap of the government’s contribution will be Rs.25,000,” he explained.

He said the scheme was in commemoration of the 125th anniversary of the 1894 farmers’ uprising of Patharughat. Some 140 farmers were killed by the British in that uprising.

Explaining the Assam Farmers’ Interest Relief Scheme, which will come into effect from April 1 next year, he said the state government would pay four per cent of the interest against the farm loan of a farmer.

“The Central government is paying three per cent of interest against farm loan. We have decided to pay the remaining three per cent. And if the Centre suddenly stops paying it, we will pay the entire seven per cent,” Sarma said.

He also said that the third scheme – Assam Farmers’ Incentive Scheme – was aimed at bringing some three lakh farmers, who defaulted on farm loans, to the banking system.

“Under this scheme, the government will give Rs.10,000 to a farmer to help him repay loan. If he has a bank loan of Rs.50,000, he can repay it by paying Rs.40,000. The remaining Rs.10,000 will be paid by the state government,” Sarma said.

The three schemes will take away Rs.800 crore from the state exchequer annually, he said.