Claiming that the Centre was only clearing the debts the nation owed to farmers by writing off loans to the tune of Rs 60,000 crore (Rs 600 billion), Union Finance Minister P Chidambaram on Saturday said he would soon explain in Parliament how funds for the purpose were to be mobilised.

Inaugurating the 2,956th branch of the Bank of India [Get Quote] in Kundrakudi, he said the government had taken this decision as it realised that farmers were too burdened with the loans they availed of and that they might quit farming altogether.

"By writing off farm debts, we have made their slate clean. They can start new accounts with banks and borrow money, not seeking loans from usurers at exorbitant rates of interest."

He also wondered why the opposition, which was all along demanding waiver of farm loans, now wanted to know how the government would mobilise money for the purpose.

He pointed out that farmers were mostly honest in their dealings and tried to repay debts, even if they pledged their jewels. For example, if they avail of a ten year loan, they normally repay it in nine years. The one year for which they could not do so was invariably due to crop failure or some other reason, resulting in mounting debts, he said.

"Farmers have been working for people from time immemorial, especially after 1947. We are all indebted to them," he said. Chidambaram said that besides himself, Congress President Sonia Gandhi and Prime Minister Manmohan Singh believed the hard work of the people would bear fruit and expressed confidence that the GDP would touch nine per cent this year.

In an apparent launch of his campaign for Sivaganga seat for the coming polls, he sought to invoke the blessings of Lord Muruga, the presiding deity of Kundrakudi village.