One-time settlement scheme worth ₹50 crore to benefit over 6,300 farmers facing the risk of land auction
Shimla:In a landmark decision aimed at protecting farmers from mounting financial distress, the Himachal Pradesh Government has announced a one-time Agriculture Loan Interest Subvention Scheme, under which it will bear 50 per cent of the outstanding interest burden on overdue agricultural loans of up to ₹3 lakh per farmer. The initiative, announced as part of the State Budget commitments, is expected to provide significant relief to thousands of farmers whose agricultural land is under the threat of auction due to loan defaults.
The scheme, carrying a financial outlay of ₹50 crore, is likely to benefit 6,356 farmers across the state. It reflects the government’s commitment to safeguarding the livelihoods of the farming community while preventing distress-driven loss of agricultural land.
Chief Minister Thakur Sukhvinder Singh Sukhu described farmers as the backbone of Himachal Pradesh’s economy and reiterated that their welfare remains one of the government’s highest priorities. He said that many cultivators have been facing financial hardships due to adverse circumstances, making it necessary for the state to extend a one-time financial lifeline.
Under the scheme, the government will shoulder half of the outstanding interest liability on eligible agricultural loans, enabling farmers to regularise their loan accounts and continue farming without the looming fear of losing their land to financial institutions.
The programme will be implemented through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank, Branches of these institutions have been directed to identify eligible borrowers and prepare beneficiary lists to ensure timely implementation.
The Chief Minister has instructed all concerned departments and financial institutions to expedite the rollout of the scheme so that deserving farmers receive assistance without unnecessary delays.
Beyond immediate financial relief, the initiative forms part of the government’s broader strategy to strengthen the agricultural sector and improve rural livelihoods. Sukhu said the state is simultaneously promoting natural farming on a large scale while providing historic minimum support prices (MSP) for naturally grown crops. These measures, he noted, are encouraging chemical-free agriculture, boosting farmers’ incomes and strengthening the rural economy.
Reaffirming the government’s long-term vision for agriculture, the Chief Minister said every possible effort is being made to shield farmers from economic hardship and create an enabling environment for sustainable agricultural growth. The interest subvention scheme, he added, represents another decisive step towards ensuring that no farmer loses his or her land because of temporary financial difficulties.
