Up to 2022, the Agriculture Department has advised considering petitions for relief from agricultural debt. The department sent the Agricultural Debt Relief Commission’s proposal to the Finance Department. The Cabinet will make the ultimate decision since it is a matter of policy.
Farm Debt Relief Kerala: Current Status and Government Review
Relief is now being discussed for debts that are due in Idukki and Wayanad districts till August 31, 2020, and in other districts until August 31, 2016. The deadline for applications was December 2025 since it was believed that there were still qualified candidates. With the exception of Idukki, the commission met continuously and resolved the majority of the applications. There are now 34,000 unresolved applications in Idukki.
Pending Applications and District-Wise Coverage
It is now necessary to apply starting in September 2020 in the districts of Idukki and Wayanad, and starting in September 2016 in other districts. The Covid era caused farmers to incur enormous losses. It is predicted that at least 2.5 lakh farmers’ applications would be received. Those who have borrowed up to Rs. 2 lakh from main groupings are eligible to apply for relief. The government will reimburse the group for half of the loan if the panel gives its approval. The other half will be the farmer’s responsibility. The organizations have not yet received their government part of the commission-approved applications.
🌾 Kerala Farmers Debt Relief Snapshot
- Scheme: Agriculture Debt Relief Commission review
- Eligible Loan Amount: Up to Rs. 2 lakh
- Key Districts: Idukki, Wayanad, and others
- Impact: Covid-era agricultural losses
- Status: Thousands of applications under review
Outstanding Payments and Credit Impact
The government has just recently paid the groups Rs 346 crore of the Rs 747 crore in debt relief that the panel ordered. There is still an outstanding balance of Rs 401 crore. Until he receives the government portion, the farmer will continue to be in debt. That will impact his CIBIL score as well.
⚠️ Agricultural Loan Waiver Payment Status
- Total Relief Ordered: Rs 747 crore
- Amount Paid: Rs 346 crore
- Pending Amount: Rs 401 crore
- Effect: Continued farmer debt burden
- Credit Impact: Possible CIBIL score issues
Minister’s View on Farmer Loan Relief Scheme
According to Minister P. Prasad, the Agriculture Department believes that raising the yearly cap for farm debt relief is a good idea. The applications are receiving prompt decisions. He said that the interests of farmers were taken into account when the commission’s report was accepted.
