EXCLUSIVE! Modi government may announce Rs 1 lakh cr farm loan waiver

A big news may be coming for banking sector, markets and the overall economy! The Modi government is working on a plan to waive-off farm loans worth Rs 1 lakh cr, sources have revealed. Zee Business Executive Editor Swati Khandelwal, in this big breaking news, said that the government could bring this relief package in tranches. The first tranche may see a loan waiver of Rs 25000 cr. 

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Khandelwal said that the government has been taking various steps to help farmers and this development is set to be a big relief for them. The move could be announced “very soon”, she said adding that it may come by next week.

In a double whammy, farmers have been hit not only by coronavirus pandemic, they are now facing one of the worst locust problems that is causing massive destruction of crops. It is being estimated that a massive 15 per cent or more of the agricultural produce may have been damaged by locusts.

Zee Business Managing Editor Anil Singhvi said that this was a big news for the farmers but will have repercussions for the banking industry.

The intention behind this move is to support farmers, Khandelwal said adding that the prices of grains in the wholesale markets have dropped by over 30-40 per cent.

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She added that the move will likely have a negative impact on the banking sector, which has been lending to the farmers. The financials of the banks will suffer, she added.