August 12, 2010

India grants US$10.49 billion debt waiver for farmers

The Indian government has granted a debt wavier and relief of over INR49,000 crore (US$10.49 billion) to nearly 27.5 million farmers under the Agricultural Debt Waiver and Debt Relief Scheme, 2008.

"As per reports received from the RBI, the scheduled commercial banks, local areas banks and urban cooperative banks have, till date, extended the benefit of debt waiver to 83.4 lakh farmer accounts for an amount of INR18,601.13 crore (US$3.98 billion)," Minister of State for Finance Namo Narain Meena said in a written reply to Rajya Sabha (upper house of Parliament).

He said in addition, debt relief amounting to INR3,308.03 crore (US$708 million) have been provided by these financial institutions to another 15.85 lakh farmers.

"Further, the National Bank for Agriculture and Rural Development (Nabard) has reported that regional rural banks and the rural cooperative credit institutions have disbursed INR27,211 crore (US$5.83 billion) for the debt waiver and debt relief to 1.75 crore farmer accounts under the scheme so far," Meena said.

Among the lenders, State Bank of India provided the maximum amount of waiver and relief amounting to INR5,307.36 crore (US$1.14 billion).