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subject: Preventing Agrarian Distress in 100 Identified Districts of India [print this page]

The Expert Group has suggested the following measures:

One Time Settlement scheme for formal sector loans. Farmers of 31 identified districts covered under the

rehabilitation package would get OTS if they pay 10% of the original loan amount, Farmers of other 69 districts

have to pay 30% for eligibility.

In other districts, farmers have to pay 70% to be eligible.

Debt Swap Scheme for informal sector loans. Under this scheme, high cost money lender debt will be redeemed by the

banks.

Anybody who is eligible for crop loan and any SHG eligible for loan will be eligible for this scheme.

Credit Guarantee Scheme to cover all farmers availing loan upto Rs. 3 lakhs.

DICGC will be the implementing agency and banks will pay the premium.

To mitigate crop risk, a Fund for Agriculture Risk Mitigation will be created to cover drought prone and flood

prone areas.

Improved subsidy on crop insurance premium.

For social networking, the panel has recommended for setting up farmer's group like Pragati Bandhu and Raithu

Mitra Groups and undertaking Debt Counseling.

The group has recommended for improved farm practices and undertaking measures for sustainable agriculture.

The Action Plan prepared by the Ministry of Agriculture for Farmers, 2007, lays down the following points for

implementation.

Action should be taken by the Ministry of Finance, NABARD and RBI by analyzing the problems of credit delivery at

State level and issue appropriate guidelines to remove bolltlenecks, if any, and improved the existing mechanism

to ensure an efficient and better delivery system of credit;

Kisan Credit Card may have a component to take care of the long term investment needs of farmer for undertaking

soil enrichment/land development or micro-irrigation/irrigation development and also for setting up of enterprises

creating non-farm employment opportunities.

Preventing Agrarian Distress in 100 Identified Districts of India

By: Kavitha Chandrappa

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