Fulfilling one of his biggest election promise, the Punjab Chief Minister Captain Amarinder Singh today announced loan waiver for farmers.

While total waiver of entire crop loans up to Rs 2 lakh was announced for small and marginal farmers (up to 5 acres), a flat Rs 2 lakh relief for all other marginal farmers, irrespective of their loan amount.

Making this announcement during his speech in the Vidhan Sabha, the Chief Minister said the move would benefit a total of 10.25 lakh farmers including 8.75 lakh farmers with land up to 5 acres.

The announcement comes after Uttar Pradesh and Maharashtra governments announced farm loan waivers. However, Punjab government claims that its initiative would provide be more beneficial that those announced by Uttar Pradesh and Maharashtra.

The decision is based on the interim report of the expert group, headed by eminent economist Dr T Haque. The group was tasked with suggesting ways and means to help the state's distressed farming community.

The Punjab government has also decided to take over the outstanding crop loan from institutional sources of all the families of farmers who committed suicides in the state. It has also decided to raise the ex-gratia for suicide affected families to Rs five lakh from the existing Rs three lakh.

For debt relief to farmers and loans raised from non-institutional resources, the government has decided to review the Punjab settlement of Agriculture Indebtedness Act. The Act will provide the desired relief to the farmers through mutually acceptable debt reconciliation and settlement, which shall be statutorily binding on both the parties, the lender and the borrower. The government has already constituted a Cabinet Sub Committee to review this Act.

Captain Amarinder informed the House that his government had already decided to repeal Section 67 A of the Punjab Cooperative Societies Act, 1961, which provides for auction/ kurki of farmers' land.

Congress party poll campaign in Punjab had focused on slogans like - karza kurki khatm, fasal di poori rakam and Kisana naal insaaf karo, sara karza maaf karo.

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