Blessing in disguise The problems of farmers and completion of development projects in state have suddenly become most important issues. In view of the forthcoming elections, the state Government keen on keeping everyone happy.
After the suicide deaths of so many farmers in the state, Home Minister Jayant Patil has finally announced that, “The State government has taken the initiative to implement a scheme and 23.39 lakh farmers who have taken loan up to Rs.20,000 will get the benefit of a 100 per cent waiver. Rs 2,881 crore will be paid to banks through cheque for principal amount and not the interest.”
Chief Minister Ashok Chavan had already announced a financial package of Rs.6,208 crore to farmers who were left out by the Central government loan waiver package.
Another scheme is for farmers whose loan amounts are above Rs.20,000 and 16.76 lakh farmers will be covered under this. Rs.3,327 crore will be released for this from April one to June 30 this year. “As many as 78 lakh farmers in Maharashtra will be benefited by Rs.14,189 crore loan waiver package of both Central and State governments,” said Maharashtra Co-operatives Minister, Harshwardhan Patil. “Under the Central government scheme, Rs 3,012 crore will be utilized for the farmer loan waiver,” Patil said. NABARD is implementing the loan waiver scheme through Co-operatives Department. Nearly 4,000 farmers committed suicide in Maharashtra in the year 2008. The figures for the period 1995-2005 stand at an appalling 32,000, with nearly 19,000 farmers committing suicide after 2001. 500 cotton farmers have committed suicide since June 2005. Of the roughly 1.5 lakh farmers who killed themselves across the country, every fifth one was from Maharashtra. Maharashtra is one of the country’s richest states and its capital, Mumbai, is home to 25,000 of India’s 100,000 dollar millionaires.
An embarrassed government has started working on a mega loan waiver package worth over Rs.65,000 crore for the agricultural sector, which would hopefully support 600 million out of the massive 1.1 billion population. The package would be borne by nationalised and cooperative banks, as per the official sources. Whether the funds needed should be raised by levying a “farmers’ rehabilitation cess or surcharge” or through a budgetary provision by diverting resources, will be discussed at the prime ministerial level. The total outgo over four years is expected to be about Rs.70,000 crore and could well increase the burden on the taxpayers. Whether the move is election-motivated or genuinely intended for the welfare of farmers and saving them from committing suicide, there is no doubt that the farmers will benefit from this historic loan waiver proposal.
Kishor Tiwari, a human rights activist said, “The government has made no effort to get to the root of the problem. Whatever campaigns are announced never go to the heart of the matter, they only tackle side issues.”
Lower incomes of farmers, caused by the low productivity, leads them into taking incremental debts from local moneylenders. Because of their illiteracy and many other reasons, they hesitate to take loans from banks and ultimately starvation forces them to commit suicide. Several factors such as disastrous policies, no access to affordable credit, greedy and corrupt middlemen, and indifferent administrations have pushed farmers to their breaking point.
After the suicide deaths of so many farmers in the state, Home Minister Jayant Patil has finally announced that, “The State government has taken the initiative to implement a scheme and 23.39 lakh farmers who have taken loan up to Rs.20,000 will get the benefit of a 100 per cent waiver. Rs 2,881 crore will be paid to banks through cheque for principal amount and not the interest.”
Chief Minister Ashok Chavan had already announced a financial package of Rs.6,208 crore to farmers who were left out by the Central government loan waiver package.
Another scheme is for farmers whose loan amounts are above Rs.20,000 and 16.76 lakh farmers will be covered under this. Rs.3,327 crore will be released for this from April one to June 30 this year. “As many as 78 lakh farmers in Maharashtra will be benefited by Rs.14,189 crore loan waiver package of both Central and State governments,” said Maharashtra Co-operatives Minister, Harshwardhan Patil. “Under the Central government scheme, Rs 3,012 crore will be utilized for the farmer loan waiver,” Patil said. NABARD is implementing the loan waiver scheme through Co-operatives Department. Nearly 4,000 farmers committed suicide in Maharashtra in the year 2008. The figures for the period 1995-2005 stand at an appalling 32,000, with nearly 19,000 farmers committing suicide after 2001. 500 cotton farmers have committed suicide since June 2005. Of the roughly 1.5 lakh farmers who killed themselves across the country, every fifth one was from Maharashtra. Maharashtra is one of the country’s richest states and its capital, Mumbai, is home to 25,000 of India’s 100,000 dollar millionaires.
An embarrassed government has started working on a mega loan waiver package worth over Rs.65,000 crore for the agricultural sector, which would hopefully support 600 million out of the massive 1.1 billion population. The package would be borne by nationalised and cooperative banks, as per the official sources. Whether the funds needed should be raised by levying a “farmers’ rehabilitation cess or surcharge” or through a budgetary provision by diverting resources, will be discussed at the prime ministerial level. The total outgo over four years is expected to be about Rs.70,000 crore and could well increase the burden on the taxpayers. Whether the move is election-motivated or genuinely intended for the welfare of farmers and saving them from committing suicide, there is no doubt that the farmers will benefit from this historic loan waiver proposal.
Kishor Tiwari, a human rights activist said, “The government has made no effort to get to the root of the problem. Whatever campaigns are announced never go to the heart of the matter, they only tackle side issues.”
Lower incomes of farmers, caused by the low productivity, leads them into taking incremental debts from local moneylenders. Because of their illiteracy and many other reasons, they hesitate to take loans from banks and ultimately starvation forces them to commit suicide. Several factors such as disastrous policies, no access to affordable credit, greedy and corrupt middlemen, and indifferent administrations have pushed farmers to their breaking point.
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