The March 31 deadline set for the repayment of the principal amount on medium- and long-term loans defaulted by farmers cannot be altered, said Minister for Cooperation S.T. Somashekhar on Tuesday, even as Opposition members urged the government to push it to September.
“The Finance Department will not agree to the proposal. They did not agree to [the idea of] two instalments either. Farmers are already coming forward to pay the principal amount,” the Minister said in the Legislative Council on Tuesday.
According to statistics given by the government, 75,904 farmers have defaulted on loans availed from Primary Cooperative Agriculture and Rural Development banks, which now amounts to about ₹702 crore. While ₹336 crore remains the principal amount, the interest component is ₹366 crore.
Raising the issue, Janata Dal (S) member Marithibbe Gowda said farmers across the State have been affected by droughts and floods over the past few years and the 40-day window provided to them to repay the principal is too short. “Extend the deadline to September. Allow them to harvest crops and raise the principal amount. Otherwise, they will have to pledge gold or raise another loan to pay the principal amount,” he said.
In response, Mr. Somashekhar said, “Already ₹60 crore has been paid by farmers. I cannot say the deadline will be extended. We will wait till March 27, and I will also speak to the Chief Minister.”
