Finance Minister on Friday announced unprecedented Rs 60,000 crore debt relief package for marginal and small farmers.

He said all agricultural loans disbursed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue loans as on December 31, 2007 would be waived.  

“For marginal farmers and small farmers there will be a complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008,” the minister said, citing the recommendations of an expert panel headed by Dr Radhakrishnan that had gone into the problem of debt-ridden farmers.

For other farmers, there will be a one-time settlement scheme (OTS) for all loans that were over due on December 31, 2007 and which remained unpaid until February 29, 2008.

As many as three crore small and marginal farmers who own land up to 2 hectares and one crore other farmers would benefit from the waiver.