In a significant move aimed at protecting the interests of farmers, the Himachal Pradesh government has announced that agricultural land will no longer be auctioned in cases of loan defaults. The decision comes under the Agricultural Loan Interest Subvention Scheme, part of a broader initiative to strengthen the rural economy and support struggling farmers. 

Chief Minister Sukhvinder Singh Sukhu confirmed the policy, emphasizing that the government is committed to safeguarding the dignity and livelihood of farmers. As per the new guidelines, the state government will bear 50% of the interest on outstanding agricultural loans under the one-time settlement policy. This step is expected to provide substantial financial relief to farmers who are unable to repay their loans due to crop failures or natural disasters. 

To implement the scheme effectively, the government has allocated a budget of ₹50 crore. The move is being seen as a cornerstone in the foundation of a self-reliant Himachal Pradesh, where the farming community is empowered through policy support rather than penalized through harsh recovery measures. 

Officials from the Department of Agriculture and Cooperative Banks have been instructed to identify eligible beneficiaries and initiate the settlement process swiftly. Farmers’ unions across the state have welcomed the decision, calling it a long-overdue measure that acknowledges the ground realities faced by small and marginal farmers. 

With unpredictable weather patterns and increasing input costs making agriculture a challenging occupation, this policy provides a much-needed safety net. The decision is also likely to improve credit flow in rural areas as farmers regain trust in the system and feel supported by the state machinery.