(MENAFN- IANS) Mumbai, Nov 26 (IANS) Amid ongoing local body elections, the Maharashtra government, in a bid to give much-needed relief to the farmers severely hit by recent heavy rains and floods, on Wednesday announced a stay on crop loan recovery for one year and restructuring of agriculture-related debt.

The government released a government resolution (GR) in this regard.

“The state experienced severe flooding during the monsoon period(June-September), causing extensive damage to crops and farmland, livestock losses, human casualties, building collapses, and displacement of affected villagers, according to a government circular issued today. The government has announced two primary relief provisions for affected farmers in designated talukas, including restructuring of cooperative loans and deferment of loan recovery,” said the government release.

According to the government resolution, short-term agricultural loans will be converted into medium-term loans to ease the repayment burden on farmers. Further, the recovery of agriculture-related loans has been suspended for one year.

“The State Level Bankers' Committee (SLBC), Maharashtra State Cooperative Bank Limited, Mumbai, and District Central Cooperative Banks have been directed to take necessary action to implement these measures across all affected villages in the designated talukas. The Cooperation Commissioner and Registrar of Cooperative Societies, Maharashtra State, Pune, will ensure strict implementation of these relief measures,” said the government resolution.

The government resolution was issued at a time when the opposition parties are demanding the crop loan waiver as promised by the MahaYuti alliance during the state assembly elections held last year.

The government has already constituted a committee headed by the Chief Minister's Chief Economic Advisor to recommend short and long-term measures to stop farmers from entering into a debt trap.

Fadnavis has declared that the government will decide on crop loan waiver by June 30 next year.

Earlier, Fadnavis said that the state government constituted a committee that will decide the norms for farm loan waiver, and based on that, the scheme will be executed in the state.

“Once the committee submits the report, within the next three months, it will be implemented. The committee will also suggest short and long-term measures to alleviate the hardship and address the financial distress in the agriculture sector,” he said.

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