FM visit leaves farmers in Punjab and Haryana discontented

THE LOAN WAIVER TRAIL - I

Amount
(in Rs lakh) Punjab National Bank,
Chor Mastpur branch1,102170200.00 State Bank of Patiala,
Shahbad Markanda branch1,1628129.00 Punjab & Sind Bank,
Rajpura branch1,6005514.00 Malwa Gramin Bank,
Shambhu branch895248.23  "Since the deadline for information is still some time away, we are in the process of collating state-wide data," said a senior executive of Punjab National Bank, which is the convenor of the state-level banker's committee. "The default is much less in this part of the country and farmers have been repaying debt," he added.  According to the farmers from villages near the Shabhu branch of the Malwa Gramin Bank, the loan waiver has rewarded recalcitrant borrowers. "We should also be given some incentive like low interest rate for timely repayment," said Harmeet Singh, who has a three-acre farm in Ukhsi Kailaspur in Patiala district and had borrowed Rs 1.5 lakh from Malwa Gramin Bank.  "This package is like a medicine for the sick children of a family. Those who are healthy, I am happy for them," Chidambram said when Business Standard raised the issue.  Farmers are not so happy, however. "This might set a bad precedent for those who follow the guidelines of good banking," said Lakhbir Singh of Marzapur.  Even the senior bank officials present there tacitly agreed that it takes time to discipline the recovery system after such waivers.  The visit to Punjab and Haryana is part of the finance minister's plan to travel to the hinterland of Maharashtra, Gujarat, Tamil Nadu, Karnataka, Orissa and Bihar to get a first-hand information on the scheme at the grassroot level.  Overall, the finance minister was satisfied with the preparations of the bank branches in terms of mobilisation of records, bankers' understanding of the schemes and the required documentation.  The banks are supposed to compile the information on eligible farmers by 20 June and display these lists together with the total debt relief by 30 June.  The banks have appointed one grievance officer after every 40 branches to address to farmers' complaints.  The finance minister assured the farmers present at the bank branches that every deserving farmer will get his due.  "There is no 31st in June and every farmer eligible farmer can check his name on the list on June 30 and apply to the grievance redressal officer within 15 days," he told them.  The finance minister and his officials were undoubtedly sincere; they have left no stone unturned for the speedy and accurate implementation of the scheme.  In spite of that, the small and marginal farmers in Punjab and Haryana were a disheartened lot today.