Nath also said a large number of farmers had taken multiple loans on the same land resource.
Bhopal: Madhya Pradesh chief minister Kamal Nath on Thursday declared debts incurred by tribals from non-licensed moneylenders null and void, thus making the state free of the ‘sahukar’ system.
Speaking at an Independence Day parade in Bhopal, Mr Nath said all the district collectors in the state had been directed to stop recovery of debts incurred under the ‘sahukar’ system.
Around 1.5 crore tribals in 89 scheduled areas in the state would be benefited by the move to dismantle the ‘sahukar’ system, an exploitative practice prevalent for ages in the rural belt.
He declared that automatic teller machines were being installed in the rural tribal markets to ensure that local adivasis draw up to Rs 10,000 using the RuPay card scheme and a debit card to meet their urgent needs.
The veteran leader also announced various welfare measures for tribals such as hike in the tendu leaf plucking rate from the current Rs 2,000 per bag to Rs 2,500.
The chief minister also announced a two-fold increase in pension for the destitute and the differently-abled to Rs 600 per month. He indicated that it would further be hiked to Rs 1,000 in five years. He said crop loans of over 20 lakh farmers in the state had been waived in the last seven months.
Mr Nath also said a large number of farmers had taken multiple loans on the same land resource. After scrutiny, their farm debts would also be written off.
Congress had promised to waive farm loans up to Rs 2 lakh per farmer if it voted to power in Madhya Pradesh in the November 2018 Assembly elections.