The waiver won't help indebted farmers in Chhattisgarh either as most of them hold four and five hectares. |
The mammoth farm loan waiver of Rs 60,000 crore is unlikely to benefit cotton farmers in Vidarbha and elsewhere as it does not address the fact that dry-land farming attracts far lower loans per acre as irrigated farming. |
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An acre of unirrigated land is entitled to loans of up to Rs 4,000. The same land which is irrigated attracts loans of up to Rs 50,000. |
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In other words, the waiver of loans taken for farmers with two hectares (or 5 acres) would not add up to much for a cotton grower who does dry-land farming, since they have to look at other informal means to meet their borrowing needs |
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In contrast, the per acre loans available for growers of sugarcane, grapes and horticulture crops will benefit hugely. |
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This difference had been pointed out by the Congress party president from Vidarbha Prabha Tai Rao when she had appealed for a waiver of up to Rs 30,000 for farm loans to Finance Minister P Chidambaram recently. |
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"While grape and sugarcane growers will get lakhs of rupees waived in one stroke, the cotton and dry-land farmers will barely get Rs 30,000 waived," Vijay Jaywanthia, a farmer-turned-activist and a leading voice from the farm distress zone of Vidarbha. |
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The waiver won't help indebted farmers in Chhattisgarh which has been reporting farmer suicides because most of them hold four and five hectares (10 to 12.5 acres). |
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Jaywanthia said the only way this waiver can work in favour of farmers is to waive up to a certain amount, say Rs 50,000 per farmer, or have different waiver limits for dry land and irrigated land farmers. |
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The farmers of Vidarbha are even demanding that the finance minister should come out with a white paper on the money that will go to different tehsils in each district under the waiver. |
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This will expose the anomaly that the waiver intentionally or unintentionally is going to benefit the sugarcane belt besides those growing horticultural crops, Jaywanthia added. |
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