Farmers, farm labourers, consultants react to farm mortgage waiver: ‘Another poll gimmick that won’t cowl greater than fraction of money owed’

ON MONDAY, Punjab Finance Minister Manpreet Badal mentioned that the state authorities, beneath its flagship ‘crop loan waiver scheme’, had introduced that it could be waiving loans value Rs 1,186 crore of 1.13 lakh farmers. The finance minister additionally mentioned that the federal government has already waived money owed amounting to Rs 4,624 crore of 5.83 lakh small and marginal farmers beneath the scheme, which was launched in 2017. With Monday’s allocation, the entire mortgage waiver of farmers will come to Rs 5,810 crore beneath this authorities.
The scheme had been a serious ballot plank within the run-up to the 2017 Assembly elections.
With the waiving of this quantity, the state authorities will be capable to obtain round 58 per cent of its goal, which was Rs 10,000 crore, introduced throughout its first Budget session in 2017, and round 6 per cent of the entire debt on the farmers of the state.
Punjab’s farmers are cumulatively beneath a debt of round Rs 1 lakh crore. This contains loans from the banking and non-banking sectors.
In the run-up to the Vidhan Sabha elections, the Congress had used the slogan ‘Karza kurki khatam, fasal di puri rakam’ (debt and attachment of land abolished and full value of crop). It had additionally acquired farmers and farm labourers to fill debt-related varieties. The farmers had been beneath the impression that the whole mortgage could be waived.
However, when the Congress got here to energy in Punjab, it put a number of situations and introduced it could waive debt upto Rs 2 lakh of small and marginal farmers (having upto 5 acres of land) solely, on March 31, 2017.
Bharti Kisan Union (Dakaunda) General Secretary Jagmohan Singh mentioned that this finances — the final one by this authorities — had include the primary ballot plank of waiving the debt of farmers, however the waiver quantity shouldn’t be even a drop within the ocean.
“It is cheating as the government had shown farmers dreams of waiving their entire debt, but after coming to power various conditions were introduced and the entire amount came to nearly Rs 10,000 crore, which was 10 per cent of the total debt,” mentioned Jagmohan, including that that they had left farmers within the lurch.
The authorities at the moment had mentioned that on the idea of a report submitted by an skilled group led by Dr T Haque, round 10.25 lakh farmers will profit from this scheme. It had declared that crop loans to small and marginal could be waived, and reduction of Rs 2 lakh could be given to the remaining marginal farmers regardless of the mortgage quantity.
The state degree bankers’ committee had knowledgeable the Punjab authorities that there have been 20.22 lakh financial institution accounts of farmers (many have a number of accounts in numerous banks) with Rs 59,621 crore on March 31, 2017. Farmers additionally owe an enormous quantity to non-banking sectors like arhtiyas, non-public finance firms, cash lenders and so on.
The final farmers’ indebtedness survey for the 2014-15 agricultural yr (July-June), sponsored by the Indian Council of Social Science Research and carried out by Punjabi University, Patiala, had proven that Punjab farmers had a complete excellent debt of Rs 69,355 crore. The consultants mentioned it has now gone as much as round Rs 1 lakh crore after together with debt from non-institutional our bodies.
Experts mentioned that even to waive off debt upto Rs 2 lakh for small and marginal farmers, round Rs 17,000-18,000 crore was required, however a lot of the small and marginal farmers, who took their loans from non-public cash lenders, gained’t qualify for any reduction on this entrance just because the federal government’s mortgage waiver coverage doesn’t cowl non-public cash lenders.
Retired professor Gian Singh from the economics division of Punjabi University, Patiala, who can also be an skilled on farming points and has carried out a number of surveys and written books on farmers’ debt and different farm associated research, mentioned that as per their survey in seven districts of the state, round 40 per cent marginal and 30 per cent small farmers get loans from non-institutional sources.
There are round 68 per cent small and marginal farmers in Punjab, as per the surveys of the colleges, whereas the federal government census mentioned there are solely 33 per cent small and marginal within the state.
Sukhdev Singh Kokri Kalan, common secretary of BKU Ugrahan, additionally mentioned that this waiver wouldn’t assist even 30 per cent of the farmers of Punjab when the Punjab authorities has not touched the Commission brokers.
“The government could not even make a law to control the private money lenders who hardly maintain farmers’ debt records and have been looting them for decades by charging interest on the principal amount,” mentioned one other skilled of the Punjab agricultural division, who didn’t want to be named, including that as per the Punjab Registration of Money lenders Act, 1938, each non-public cash lender should be registered and will submit a report in regards to the debt they provide and curiosity they get again twice a yr on June 30 and December 31 in order that there are checks to detect those that are charging poor farmers a excessive charge of curiosity between 18 to 36 per cent.
“If the government puts a check on this practice, a large number of farmers may come out of the debt net,” the skilled added.
How farm labourers are studying mortgage waiver
The mortgage waiver announcement was additionally a serious subject of dialogue amongst farm labourers in villages in addition to on the protest websites. Various them recalled {that a} coverage for waiving loans of landless farm labourers was framed in March 2019 and Cabinet had agreed to it as effectively. Now, allocation of Rs 526 crore shouldn’t be a brand new factor on this Budget, they mentioned.
“I remember an announcement about farm labourers done in 2019. Cabinet had approved the loan waiver of all those landless farm labourers who were members of Primary Agriculture Credit Societies (PACS) loan waiver of Rs 25,000 per head with simple interest of 7 per cent per annum was part of this policy and Rs 520 crore was calculated at that time, its implementation never happened till date and now yet another announcement with fund allocation which reached Rs 526 crore. This 6 crore is the only change, I think,” Mukesh Malaud, president of Zamin Prapati Sangrash Committee (ZPSC), instructed The Indian Express.
He mentioned, “The major question is of implementation only, otherwise the announcement is an old one. They made a policy two years ago. So what is the new thing for which they are making claims in the budget?”
Punjab has a complete of seven.5 lakh farm labourer households, as per information obtainable with Punjab Khet Mazdoor Union (PKMU). Lachman Singh Sewewala, common secretary of PKMU, mentioned, “Punjab has 31.94 per cent SC population as per the 2011 census and out of it a large number is of landless farm labourers as majority are of SC/BC communities. Hence, this vote bank has always been a target area for politicians. Earlier, there were talks of only loan waiver of farmers having landless than five acres and we were not even in the picture. Finally, a policy was framed in 2019, but it was never implemented. So now, less than a year is left for the 2022 Vidhan Sabha elections, and an announcement in the budget comes for loan waiver. Actual debt on farm labourers of Rs 9,500 crore and hence Rs 526 crore is a small fraction…However now our focus is to get even this one implemented at the earliest or we are ready for protests.”
“Many other demands of farm labourers have however not been addressed at all. These include the issue of Nazool Lands (Transfer) Rules, 1956, under which there are many anomalies and the majority SC families have not got the benefits of this land. Not only this, one third of panchayati land is to be given on annual lease to Dalits of a particular village and even this is done by creating dummy Dalit candidate. Atrocities against Dalits, many other issues are never addressed and a catchy statement is given in the name of loan waiver,” Malaud added.