Question

What do you think the Government can do to help farmers
when they get into debt?

Answer 1

With a read to make sure availableness of agriculture credit at a reduced rate of interest of seven p.a. to the farmers, the government of the Republic of India within the Department of Agriculture Cooperation and Farmers’ Welfare (DAC&FW) implements an Interest Subvention theme for brief-term crop loans up to Rs. 3.00 lakh. The theme provides interest subvention of twenty-two every year to Banks on the use of their own resources. Besides, a further three-dimensional incentive is given to the farmers for prompt compensation of the loan, thereby reducing the effective rate of interest to four-dimensional.