The Andhra Pradesh Government today notified that crop loans and agricultural gold loans disbursed for crop purposes up to December 31, 2013 are eligible for cover under the loan waiver scheme.

In an order issued today, the Government has notified that crop, agricultural loans disbursed for crop, including the loans converted to medium term loans due to calamities, including interest rate up to December 2013 are eligible for cover.

The State Government through three notifications, including the one by the State Finance Ministry on August 14 had announced norms for debt relief to farmers, women self help groups. It had also issued operating guidelines for the implementing agencies.

The order also states that loans which were outstanding as on December 31, 2013 would be eligible for waiver even if they were subsequently repaid to bank or cooperative.

The Chandrababu Naidu Government is going ahead with the loan waiver scheme in spite of limited support extended by the RBI. As against the request for waiver of crop loans for last kharif and rabi season, the RBI had offered loan flexibility in four districts of the 13 districts in Andhra Pradesh. RBI had made it clear that crop yields have been good in several districts and therefore, it was limiting the relief to only four districts.

The State Government has yet again pleaded with the RBI to help extend to other districts.

Related Topics