Ahmedabad, 13 September 2012

Considering the failure of Kharif crop cultivation due to delayed rain, the Chief Minister Narendra Modi has announced to give 100% relief on the payment of interest on agricultural credit availed by Kharif cultivators by August 15, 2012. The Chief Minister has also announced to give 50% relief on the agricultural electricity bills.

Speaking about the announcements the Chief Minister said that around 14 lakh farmers have availed agricultural loans worth Rs.7,000 crore for the cultivation of Kharif crops. Since there was a delay in rain, the Kharif cultivators have suffered loss this year. In such a situation the state government has decided to free them from the burden of paying interest on the Kharif loans availed by August 15, 2012. Instead the burden of a huge sum of Rs.300 crore pertaining this will be borne by the state government. Gujarat government has given priority to the interests of the farmers.

He said that due to the rain deficiency the farmers had to avail water from different water conservation structures, which compelled them to pay huge electricity bills. The state government already gives Rs.3000 crore subsidy for such electricity bills, which is highest in the country. But considering the difficult situation this year, the government will give 50% relief in agricultural electricity bills to the farmers.

The Chief Minister said that the farmers do not get fresh loans if they fail to repay it in due time. Gujarat farmers have already suffered loss due to delayed rain and are now unable to repay their loans in due time. In this regard he also urged the Centre to increase the loan repayment period by one year and show generosity in giving fresh loans to the Gujarat farmers.