Jasveer Singh took the extreme step at his village. He is survived by a wife and two children, they said.
His family told police that the farmer had taken a loan of Rs 1.75 lakh from a bank, and he had to another sum of Rs 30,000 which he borrowed from a commission agent. He also borrowed Rs 17,000 from another source.
Police said Singh was unable to pay back all these debts due to which he ended his life.
Notably, as part of its debt waiver plan, the Punjab government had last month announced waiver of entire crop loans up to Rs 2 lakh for small and marginal farmers (up to 5 acres), and a flat Rs 2 lakh relief for all other marginal farmers, irrespective of their loan amount, which would benefit a total of 10.25 lakh farmers, including 8.75 lakh farmers up to 5 acres in the state.
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Chief Minister Amarinder Singh had met Union Finance Minister Arun Jaitley in Delhi on July 20 seeking one-time settlement of Rs 6,000 crore worth of loans taken by the state's farmers from national and private banks.
However, the opposition Shiromani Akali Dal had alleged that debt-ridden farmers continue to end their lives in Punjab despite the Congress-led government announcing loan waivers for them.
With farmers outfits claiming that over 100 suicides have taken place in the state ever since the Amarinder Singh- led government took charge, opposition parties have accused the state government of committing fraud against the growers by providing a "minuscule" amount as waiver while backing out on its promise of total waiver of farm debt.