Punjab Chief Minister Bhagwant Mann on Monday announced the freeze of repayment of loans given to the farmers by primary agricultural cooperative societies.
An official spokesperson said the CM has taken the decision in wake of the losses suffered by the farmers due to recent rain and hailstorm.
Mann expressed the hope that this will give the much-needed relief to the farmers in this hour of crisis. He said the farmers can pay back the amounts later after they recover from the losses.
The CM said this will prove boon to the farmers of the state by giving them more time to repay their loans and avoid imposition of penal interest, which will have been levied on farmers who did not repay the loan.
He said the state cooperatives lends crores of rupees per crop to the farmers of Punjab as short term crop loan through the primary agricultural cooperative societies.
Mann said this step by the state government is an important concession to the farmers. He said as a result of this extension in time, a large number of farmers will be saved from becoming defaulters and will remain eligible to get loan for the next crop.