Yechury wants Govt to cut interest rate on farm loans to 4 per cent

CPI(M) politbureau member Sitaram Yechury on Sunday called for an increase in the credit availability to the agriculture sector...

CPI(M) politbureau member Sitaram Yechury on Sunday called for an increase in the credit availability to the agriculture sector and a reduction in interest rates to 4 per cent.

Releasing a study on agriculture by industry chamber Assocham, Yechury said “You cannot prevent farmer suicides unless more credit is made available to them.”

Admitting that agricultural credit has been doubled under the UPA government, the CPI(M) MP said it was not adequate and that the government should immediately step up the credit to farmers.

Story continues below this ad

He also demanded that interest rates on farm loans be cut to 4 per cent from the current 7 per cent as recommended by the National Farmers Commission headed by M S Swaminathan.

Stating that India is passing through agrarian distress, Yechury asked government to emulate West Bengal’s model in raising food production.

“Production has increased as the tiller has been given legal rights to the land,” he said, referring to land reforms in the state. About 90 per cent farmers have small holdings in the West Bengal, he added.

Giving the example of Singur, where the Tata Nano project has been set up, he said 12,000 people have already collected compensation against land acquisition.