Industry body PHDCCI today hailed Punjab Chief Minister Capt Amarinder Singh's decision to waive farmers' crop loans up to Rs 2 lakh as 'much needed step'.
The Punjab government yesterday took decision to waive 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.
The decision of the government will help in strengthening of agriculture sector, PHDCCI Agri business head Jagmohan Bhanot said.
"It (loan waiver) will help in improving the economy of the state," he told PTI.
Singh's announcement has paved the way for eventual total waiver of agricultural debts, which was a major poll promise of the Congress in Punjab, which were held in March this year.
The Congress had stormed to power in the state after a hiatus of 10 years by securing an overwhelming majority routing SAD-BJP combine.
During his speech in the state assembly here yesterday, the chief minister has said the move will benefit a total of 10.25 lakh farmers, including 8.75 lakh farmers up to 5 acres.
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