New Delhi: In a move to mitigate sufferings of farmers in 14 drought-hit states, Prime Minister Atal Behari Vajpayee on December 18 announced in Parliament waiving of interests for one year on Kharif loans taken by them.

Recalling that government had earlier deferred the current year's interest on both Kharif crop loans and agricultural term loans and rescheduled payment of principal amounts, Vajpayee, in a suo moto statement, said, "I have now decided to waive completely, the first year's deferred liability of interest on Kharif loans as a one-time measure".

Those having availed of this facility would be entitled to obtain an endorsement of this waiver directly from their loaning bank, he said, adding appropriate guidelines in this regard would be issued by the Reserve Bank of India.

Stating that the government had sanctioned an allotment of 38.75 lakh metric tonnes of rice and wheat worth Rs.4000 crore free of cost to the 14 states, Vajpayee said more food grains would be made available to the needy states depending on the utilisation.

He, however, suggested proper monitoring of the utilisation of the food grain in generation of relief employment.

PTI