Centre only clearing debts nation owes to farmers, says FM

Claiming that the Centre was only clearing the debts the nation owed to farmers by writing off loans to the tune of Rs 60,000 crore, Union Finance Minister P Chidambaram today said he would soon explain in Parliament how funds for the purpose were to be mobilised.

Inaugurating the 2,956th branch of the Bank of India here, he said the government had taken this decision as it realised that farmers were over-burdened with the loans they availed of and that they might quit farming altogether.

"By writing off farm debts, we have made their slate clean. They can start new accounts with banks and borrow money, not seeking loans from usurers," Chidambaram said.

He also wondered why the Opposition, which was all along demanding waiver of farm loans, now wanted to know how the government would mobilise money for the purpose.

The minister pointed out farmers were mostly honest in their dealings and tried to repay debts, even if they pledged their jewels. For example, if they avail of a ten-year loan, they normally repay it in nine years.