Tamil Nadu CM Urges PM Not To Make Changes In Interest Subvention Scheme For Farmers In Short Term Loans

29 April, Chennai

Tamil Nadu Chief Minister O Paneerselvam has urged Prime Minister Narendra Modi not to make any changes in the interest subvention scheme for short term crop loans for farmers.

In a letter to the Prime Minister today, he said that any change in the scheme should be brought only after discussing with Chief Ministers in the National development Council or governing council of Niti Ayog.

Paneerselvam said that any reduction in the extent of concession of farm loans will be a retrograde measure. Due to unseasonal rain standing crops have been damaged and any move to make farm loans less concessional will be disastrous to farmers.

He pointed out that interest subsidy paid through DBT is not right as farmers would be forced to find cash resources to pay higher interest dues at first. The DBT based reimbursement is not an appropriate model for farm credit, he pointed out in his letter.