India announces measures to ease cash crunch for farmers

[NEW DELHI] India's government on Thursday allowed farmers to draw money from banks against loans sanctioned to them to buy seeds and fertilisers in the ongoing sowing season, as it responds to criticism against the move to cancel high-value rupee bills.

Farmers will be able to withdraw up to 25,000 Indian rupees per week against their crop loans, Economic Affairs Secretary Shaktikanta Das told reporters, adding the time limit to pay crop insurance premiums has also been extended by 15 days.

Millions of Indian farmers, however, have no bank accounts and depend on local moneylenders to fund sowing.

REUTERS