Credit guarantee scheme for distressed farmers likely

Mumbai, July 24 (UNI) As a measure to extend sufficient credit to poor farmers in the country, the government is likely to put in place Credit guarantee scheme for distressed farmers.

A working group, constituted by the Reserve Bank of India (RBI) and chaired by Punjab State Planning Board Vice Chairman S S Johl, constituted to suggest measures for extending help to farmers, is said to have recommended measures in this regard.

As per the recommendations, the credit guarantee scheme would be administered by Deposit Insurance Credit Guarantee Corporation.

''Government, RBI and NABARD should facilitate hassle-free flow of credit from the institutional financial sector to the agricultural sector as the Indian agriculture is facing difficult times and the Indian farmers have been experiencing extreme distress,'' according to the recommendation.

During its study, the working group had utilised data availed from various sources and had conducted field visits to districts in Orissa, West Bengal, Kerala, Andhra Pradesh and Punjab to study farmer's issues.

UNI