“Interest-free Crop loans to farmers” is hoax to 3 million vidarbha dying cotton farmers as Banker denied fresh crop loan to 90% credit starved farmers
Maharashtra Govt. decision to give Rs.50000 crop loan to regular, non-default as “Interest-free” has been termed as futile and useless for the drought hit cotton farmers where bankers failed to provide the fresh crop loan to farmers as till date only 12% target of crop loan set by NABARD has been achieved thanks to apathy of Maharashtra administration, kishor Tiwari of Vidarbha Jan andolan Samiti(VJAS) has informed today in the press note .
“year of drought and cotton crop failure and central Govt. has ordered reconstruction of crop loan of all drought hit farmers but till date only 1.2 lakhs farmers as against the total 2 million debt trap farmers of region manage to get fresh crop loan even NABRD has set the crop loan target of Rs..2460 but bankers have disbursed only Rs.314 crore as per official figure as on 25th June 2010 hence such interest free loan facility will only benfiting the farmers of western Maharashtra and this nothing but the hoax for dying vidarbha farmers .
It was expected that on agriculture credit front in dying field of vidarbha where farmers are committing suicides due to debt , Maharashtra Govt. will take urgent steps as per the last report of Dr. Narendra Jadhav committee which has been accepted by Govt. asking for the bankers credit reforms in suicide prone west vidarbha which are related to the need for restructuring of the rural financial institutions and also making them socially more sensitive. In the case of co-operative banks, suggestions made by the Vaidyanathan Committee be implemented expeditiously and asked the administration to take the steps which are
Agricultural Credit Planning
While providing credit, banks often place a number of undue restrictions on farmers by introducing rigid criteria about season, cropping pattern and the scale of finance. It is imperative to bring in some flexibility in this respect. In this regard, instead of the prevailing cropping pattern, an average cropping pattern could be used and a limit set accordingly. The task of reformulating the scale of finance should be delegated by the State Level Krishi Vikas Parishand to an independent professional institution.
Alternate to Money Lenders
The massive Debt-Waiver scheme has not addressed the indebtedness arising from the non-institutional credit. There is an imperative need to create an effective alternative to the prevailing system of moneylenders and relieving the farmers from their clutches. In this regard, a Plan for
1.Atleast one member of each family in the village should become a member of some Self-help Group (SHG) in the village.
2.Every rural and semi-urban branch of each bank should adopt one village in its jurisdiction.
3. Since at least one member of every family in the village would be a member of SHG and through the SHG to an institutional source of credit, a 100 per cent financial inclusion would be achieved and over a three-year period the village can be free of indebtedness from moneylenders.”
This is worst ever performance of agriculture credit and institutionalized crop loan to already agrarian crisis hit region which has almost nullified the effect of all bailout packages given by state and central Govt. since 2005 that cover Chief Minister Relief Package-2005 (Rs.1075 crore),Prime Minister Relief Package-2006(Rs.3750 crore) ,central govt. loan waiver-2008(Rs.71,000 crore) and Maharashtra Govt. extended loan waiver -2009 (Rs.6350 crore) ,Tiwari added.