The waived interest will be reimbursed by the state government.
Madhya Pradesh Chief Minister Shivraj Singh Chouhan will today launch a campaign for farmers' interest waiver ahead of state elections later this year.
He will begin the drive from Kerbana village of Sagar district by receiving applications under the Chief Minister Farmers' Interest Waiver Scheme-2023.
The government will wave interests amounting to over Rs 2,200 crore, benefiting over 11 lakh farmers who have defaulted on loans.
"Farmer brothers and sisters will not be called defaulters with the payment of interest by the state government. They will also be given default-free certificates by the committee. The farmers will be eligible for the scheme at zero percent interest rate," said the chief minister.
Once the scheme is implemented, the farmers will start getting fertilisers and seeds from the agricultural societies that had stopped supply to the defaulters.
The government intervention comes at this juncture to provide relief to the farmers.
The farmers under the Primary Agricultural Credit Societies, affiliated to District Cooperative Central Banks, whose total outstanding loan amount, including the interest, is up to Rs 2 lakh as on March 31, 2023, and are defaulters, will be given the interest waiver.
Short-term crop loans and short-term loans which have been converted into medium-term loans due to natural calamities are also included.
The waived interest will be reimbursed by the state government.