The Jharkhand government announced on Friday its decision to forgive farm loans up to ₹2 lakh, providing relief to more than 1.91 lakh farmers in the state, according to news agency PTI.
Jharkhand Agriculture Minister Badal Patralekh instructed banks to submit a proposal for the loan waiver during a meeting with officials of the State Level Bankers Committee (SLBC).
“Loans taken by farmers ranging from ₹50,000 to ₹2 lakh until March 31, 2020, will be waived through a one-time settlement,” the minister stated. He also noted that in 2021-22, the state government had already announced a crop loan waiver of up to ₹50,000.
“As per our commitment, the state government has already waived loans up to ₹50,000 for more than 4.73 lakh farmers… The Jharkhand government has allocated over ₹1,900 crore to banks,” PTI quoted the minister.
In an effort to alleviate farmers’ debts, the minister also urged bank officials to submit a proposal for closing all non-performing asset (NPA) accounts to the state government.
In February 2024, the new Chief Minister Champai Soren-led Jharkhand government presented a budget of ₹1.28 lakh crore for the fiscal year 2024-25. The budget also raised the ceiling under the farm loan waiver scheme from ₹50,000 to ₹2 lakh, as reported by the Economic Times.
According to an Indian Express report, the number of farmers in Jharkhand ranges from 22 lakh to 32 lakh, with many being single crop growers. Prior to the previous installment of loan waivers in December 2020, the state had 12.93 lakh farmers with outstanding farm loans amounting to nearly ₹5,800 crore.
