The Maharashtra government has decided to restructure crop loans worth Rs 7,500 crore issued to farmers for the kharif seasons of 2012-13 and 2013-14. The decision was taken at a meeting of state ministers held in Mumbai. Similarly, the government has also decided to extend the time limit on the payment of the first instalment of the crop loans given for the season of 2014-15. This amounts to around R350 crore, cooperation minister Chandrakant Patil said. Around 65 lakh farmers in the drought-hit parts of Maharashtra are expected to benefit from this move. According to Patil, the state has been in the grip of a drought-like situation for the past five years, and some 20-22 districts have been facing these conditions. Because of this situation, farmers have been unable to repay their loans. This includes loans worth R2,438 crore for the year 2012-13 and R5,000 crore for the season of 2013-14. Since farmers will not be eligible for fresh loans unless they repay these loans, the government has decided to restructure the entire amount of R7,500 crore. These loans will be restructured into a medium term five-year period and the interest for the first year will be borne entirely by the state government, the minister said. The government will also bear 6% portion of the interest for the next four years. The government intends to approach the Reserve Bank of India ( RBI) to treat the restructuring of loans for the period of 2012-13 and 2013-14 as a special case. Patil also said crop loans worth Rs 3,503 crore for the kharif season of 2014-15 have already been restructured. The first instalment of this loan comes up for repayment during this time. Of the repayment of around Rs 700 crore, an amount of Rs 300 crore is likely to remain unpaid. Therefore, the government has decided to extend the time limit for repayment by one year. After two consecutive droughts, the India Meteorological Department (IMD) has said the monsoon this year is expected to be “above normal”. It forecast monsoon at 106% of the Long Period Average (LPA). The state government has begun planning for sowing operations on 1.5 crore hectare across Maharashtra. Government officials estimate a 23% rise in issuance of crop loans this season. With the focus on restructuring, a meeting of Nabard, RBI and Bank of Maharashtra ( BoM) has been planned soon. Around 80% of the state’s crop area is expected to be brought under the Prime Minister’s Crop Insurance Scheme. Maharashtra additional chief secretary (agriculture & marketing) DK Jain told FE that the final meeting will be held on Thursday after which the actual figure for sowing operations will be finalised. The government has also decided to focus on promotion of pulses with this being the international year of pulses. The target is to increase the pulse crop area by 2.5 times. The Centre has granted funds to the tune of Rs 350 crore for this purpose. The campaign for promotion of pulses shall include introduction of newer varieties, preparation of seeds through farmer producer companies and funding assistance of Rs 2,500 per hectare, Jain said. Source - http://www.financialexpress.com