Don't repay loans from 'illegal' moneylenders: Pawar to farmers

A DAY LATER

Union Agriculture Minister Sharad Pawar today advised the farmers not to repay the loans they have taken from those moneylenders who do not have the required licence. He also urged the state governments to protect such farmers from these lenders.

Addressing a press conference in Mumbai today in the backdrop of the loan waiver announcement in yesterday's Budget, Pawar said, "I appreciate the media's concern about the fate of farmers who have taken loan from private moneylenders. According to our information, most of the moneylenders operating in rural areas don't have the licence for the same, hence their moneylending business is illegal and farmers are under no legal or moral obligation to repay these illegal loans."

"I will write to all the state governments asking them to protect farmers from the moneylender. In fact, state governments should create a separate machinery to look into farmers' complaints of coerced recovery of loans at the taluka level. Also, workers from political parties, including the NCP, should come forward to protect farmers," he added.

Giving details about the package, Pawar said, "Out of the Rs 60,000 crore package for loan waiver, the government will have to provide only Rs 40,000 crore as under the prime minister's package, loans of Rs 20,000 crore to farmers have already been rescheduled and banks will be paid this rescheduled loan over the next three years."

He said the biggest beneficiary of this package is Kerala, where more than 98 per cent of the farmers fall in the marginal and small farmers category.

Other states like West Bengal, Uttar Pradesh, Bihar and Jammu and Kashmir would also get the benefit of this package, as in these states also, the number of marginal and small farmers is more than 90 per cent. Maharashtra will also be benefited to a large extent as more than 75 per cent of the farmers from the state fall in this category, he added.

Currently, only 40 per cent (40 million) farmers across the country are eligible for loans from banks. After the loan waiver package, an additional 40 per cent will be eligible for the credit "and with institutional credit line being opened for these farmers, we hope the country will see a major growth in agriculture production and productivity," Pawar claimed.

Replying to a question, Pawar said, "If every medium and large farmer of the country comes forward to avail the benefit of the one-time settlement scheme, the size of the package can go up to Rs 65,000 crore."

Answering another query, Pawar said he was not sure whether the move would check farmer suicides in the country or not. "But to stop them, one has to ensure adequate institutional credit and irrigation. Through this Budget, the UPA government has tried to address both these issues," he added.

Touching upon another important area, Pawar said, "Like the middle class which has vivid loan options available, the farmers of our country do not have such variety of loans available for them. The government is considering ways and means to make consumption loan available from financial institutions."

Responding to a question on the early election prospects, Pawar said, "It seems as if only the media is gearing up for the election, perhaps you people don't realise how difficult it is to contest elections. We still have around 15 months to go and we are not at all in a hurry to face the elections."