Chandigarh, Aug 23 (IANS) The Punjab government on Thursday decided to streamline the system of money lending to farmers by fixing a limit on the advance on per acre of land, and the rate of interest will also be duly determined by the government.
The state cabinet, at a meeting chaired by Chief Minister Amarinder Singh, approved the introduction of the Punjab Settlement of Agricultural Indebtedness Bill of 2018 in the Assembly session beginning on Friday.
The bill, aimed at further relieving the state’s farmers from debt, proposes a series of measures to protect the interests of the farming community, saving them from the clutches of unauthorized money lenders who charge exorbitant rates to give unlimited amounts as loans.
With the enactment of the bill, only licensed money lenders will be allowed to advance the money, with lending by others deemed to be illegal.
The Cabinet also approved a bill to create a Price Stabilization Fund to ensure that farmers in the state get the minimum support price (MSP) for their produce.
The bill will be tabled for enactment in the upcoming session.
It also aims at protecting the interests of farmers in the event of a sudden fall in prices of certain agricultural commodities below normal prices.