To address farmers' distress ahead of 2019 general elections, the government is considering waiving interest on crop loans for farmers who pay on time, costing an additional Rs 15,000 crore to the exchequer, according to sources.
Currently, farmers have to pay 4 per cent interest rate if they repay their loans within due date.
There is also a proposal to completely waive premium for taking insurance policy for food crops. The premium on horticultural crops could also be reduced, they said.
When asked about the government's plan of announcing big farm package, Law Minister Ravi Shankar Prasad said: "The government is committed towards farmers' welfare. Going forward, whatever decision taken, will be announced."
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