Farmers to get extension in interest subsidies

New Delhi, Feb 16 (ANI): Finance Minister Pranab Mukherjee on Monday announced an extension of interest subsidies to debt-hit farmers, and said the government would continue with the interest subvention scheme for farmers for loans up to Rs. 300,000.

"The government will continue to provide interest subvention scheme in 2009-10 to ensure that farmers get short-term crop loans up to Rs three lakh at seven per cent per annum," Mukherjee told Parliament while presenting the vote-on account for 2009-10.

"To strengthen the short-term credit structure, a revival package in 25 states involving financial assistance of about Rs 13,500 crore is also being implemented by the government," he added.

The Finance Minister highlighted the focused attention given by the Government to the farming sector. The highlights include 300 per cent rise in Plan allocation for agriculture in the last five years and launch of Rs. 25,000 crore Rashtriya Krishi Vikas Yojana to increase farm growth to four per cent per year during the XI Plan.

In the last four years, agriculture has not only staged a turn around but also achieved record foodgrain output.

Mukherjee indicated that the government has increased plan allocation for agriculture by 300 per cent in the last five years, provided the largest ever debt waiver package to farmers. (ANI)