Punjab chief minister Parkash Singh Badal has directed the co-operation department to give farmers one more month (or time till July 31) to repay the loans secured from co-operative societies and banks.
This decision will help farmers avoid penal interest after June 30. “Punjab co-operative societies registrar Arunjit Singh Miglani passed an order to this effect on Friday here,” said an official spokesperson. The state’s central co-operative banks extend about Rs 6,500 crore of short-term loan for each crop to Punjab farmers through the primary agricultural co-operative societies. The primary agricultural development banks have given farmers long-term credit of about Rs 2,400 crore.
The extension will not only save many farmers from becoming loan defaulters but also keep them eligible for credit for the next crop, if they square the debt by July 31.