KEY TRENDS 

• The loan waiver and debt relief package announced by the Prime Minister of India provides for complete write-off of all outstanding debt held on December 31, 2007 to scheduled commercial banks and co-operative societies, of small and marginal farmers, that is those holding less than 2 hectares of land
• The Government of Kerala established a Debt Relief Commission, to identify the pockets and categories of severe agrarian distress and provide relief accordingly
• Minimum Support Price (MSP) for common variety of paddy increased from Rs.550 per quintal in 2003-04 to Rs.900 per quintal for the crop year 2008-09. In case of wheat, increase was from Rs.630 per quintal in 2003-04 to Rs.1080 per quintal for the year 2009*
• Agriculture credit flow was Rs. 2,87,000 crore in 2008-09. The target for agriculture credit flow for the year 2009-10 is being set at Rs. 3,25,000 crore**
• Under the interest subvention scheme for short-term crop loans to farmers for loans upto Rs.3 lakh per farmer, the interest rate has been fixed at 7 per cent per annum. However, additional subvention of 1 per cent on the part of the Government would bring down the net interest rate for these farmers to 6 per cent per annum**
• Under the Agricultural Debt Waiver and the Debt Relief Scheme, the last date to repay back 75% of the outstanding loans by farmers owning more than two hectares of land has been extended from 30 June to 31 December, 2009 due to late arrival of the monsoon**
• A special taskforce would be prepared to seriously check the debt crisis in Maharastra, where farmers have borrowed from private moneylenders**
• The allocation for Rastriya Krishi Vikas Yojana has been increased by 30% over Budget Estimates of 2008-09**

* Interim Budget 2009-10
** Union Budget 2009-10, which was presented by the Minister of Finance Shri Pranab Mukherjee on 6 July, 2009