"Farmers never sought that a law be made on settlement of debt. It was brought only to divert people's attention from the current anti-government wave," Federation of Arthiyas Association of Punjab, President, Vijay Kalra alleged.
To bring farmers out of debt, the need of the hour is to increase their income by implementing Swaminathan Commission report, as promised by BJP, he said.
"If the law is implemented, it can create a divide between farmers and arthiyas," he said, adding, they have been lending to the farmers for marriages, children's education etc.
Under this bill, if a farmer has paid double the principal amount, the loan can be discharged. It also stipulates establishment of district-level forums for debt settlement and state-level agricultural debt settlement tribunal. Also, the state government shall fix the maximum rate to be charged by arthiyas from farmers per annum.
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Notably, rural debt in Punjab is estimated at over Rs 35,000 crore and this has been one of the reasons behind farmers' suicides in the state.
"How can other person fix rate of interest on my money," he asked and reasoned that arthiyas take loan from banks at 13-14 per cent interest and then lend it to the farmers.
Condemning the move to form tribunals and forums for debt settlement Kalra said, "We have courts which can take care of any dispute then why these forums or tribunals."
He claimed banks would "shy away" from lending money to farmers if arthiyas stop lending. "There is a strong resentment among arthiyas about the bill and we shall soon announce our course of action once we have gone through the notification of the law," he said.