India Region

Punjab CM freezes repayment of loans taken by farmers from PACS

01 April 2023, Chandigarh: In a major pro-farmer initiative, Punjab Chief Minister Bhagwant Mann on Monday announced to freeze repayment of loans taken by the farmers from Primary Agricultural Cooperative Societies (PACS).

“The Chief Minister has taken the decision in wake of the losses suffered by the farmers due to recent rain and hailstorm”, said a statement released by the state government. He expressed hope that this will give much-needed relief to the farmers in this hour of crisis. Bhagwant Mann said that the farmers can pay back this amount later after they recover from the losses.

The Chief Minister envisioned that this will prove a boon to the farmers of the state by giving them more time to repay their loans and avoid the imposition of penal interest, which will have been levied on farmers who did not repay the loan. He said that the state cooperatives lend crores of rupees per crop to the farmers of Punjab as short-term crop loans through the Primary Agricultural Cooperative Societies. Bhagwant Mann said that this step by the State Government is an important concession to the farmers.  He said that as a result of this extension in time, a large number of farmers will be saved from becoming defaulters and will remain eligible to get a loan for the next crop.

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