The government has decided to raise money in order to provide interest-free loans to farmers under the proposed farm loan disbursal mechanism. The cost of interest will be borne by the central government, as per information provided by Union Minister Ramvilas Paswan.
The centre has currently decided to raise Rs 6,000 crore to provide interest-free loans to farmers. This step has been taken so that farmers do not have to go to moneylenders and fall into debt traps.
Separately, the government is also working on ways to contain the price rise of pulses by boosting supplies and will decide on Minimum Support Prices (MSPs) for kharif crops such as paddy.