In a major pro-farmer initiative, the Punjab Chief Minister Bhagwant Mann on Monday announced to freeze repayment of loans taken by the farmers from Primary Agricultural Cooperative Societies.
A press statement said the Chief Minister took the decision in wake of the losses suffered by the farmers due to recent rain and hailstorm. He expressed hope that this will give much needed relief to the farmers in this hour of crisis and said that the farmers can pay back this amount later after they recover from the losses.
Mann envisioned that this will prove boon to the farmers of the state by giving them more time to repay their loans and avoid imposition of penal interest, which will have been levied on farmers who did not repay the loan. He said that the state cooperatives lend crores of rupees per crop to the farmers of Punjab as short term crop loan through the Primary Agricultural Cooperative Societies.
He said that this step by the state government is an important concession to the farmers, adding that as a result of this extension in time, a large number of farmers will be saved from becoming defaulters and will remain eligible to get loan for the next crop.
