Agricultural trade

Framers’ Debt Relief

In the context of unprecedented farmers suicide and agrarian debt crisis in the state, the Government of Kerala enacted the Kerala Farmers’ Debt Relief Commission Act 2006. in order to provide relief to the farmers in debt trap. The five member Debt Relief Commission has been established by the Government under the chairmanship of Justice K.A.Abdul Gafoor,

As per the new Act the farmers are entitled to debt relief for an amount up to seventy five percent, if the amount is up to fifty thousand rupees 
For debt above fifty thousand, debt relief is limited to fifty percent of the amount subject to a maximum of one lakh rupees, which ever is less
The commission has the powers to pass awards, recommend appropriate measures for the redressal of farmer’s grievance through conciliation and mediation
Powers of the commission include the following:

• Request the government to declare a district as distress affected area distress affected crop, or distress affected farmer, after proper evaluation

• To fix the fair rate of interest in case of creditors other than the institutional creditors

• Undertake conciliation in case of disputes

• Adjudicate disputes

• Negotiate with creditors regarding loan waiver interest rate relief loan rescheduling and loan moratorium to farmers

• Recommend to government for debt relief to be grated to farmers

• Recommend to government to take over the entire orpartial debt and exonerate farmers from the effect of debt