Date:02/03/2008 URL: http://www.thehindu.com/2008/03/02/stories/2008030254890300.htm

Andhra Pradesh

Loan waiver a moral victory of UNPA, says Yanamala

Staff Reporter

Tuni: Chairman of the Public Accounts Committee and former finance minister Yanamala Ramakrishnudu said on Saturday that waiver of Rs. 60,000 crore worth loans to medium and small farmers was a moral victory of the UNPA partners, who have pressurised the Union Government on loan waiver and also minimum support price for agriculture products.

Addressing a press conference here on Saturday, Mr. Ramakrishnudu said though loan arrears were to the tune of Rs. 4,60,000 crores, the government waived only Rs.60,000 crores. He said there was no mention about subsidy on fertilizer and seeds.

He that financial growth rate was always depended on agriculture growth in agrarian countries and governments should give more support for basic needs of agriculture along with waiving of loans.

He said the loan waiver would benefit only 27 percent of farmers in the country.