A private member bill seeking a loan waiver for farmers in Gujarat was Thursday introduced by a Congress MLA in the assembly, but it was eventually rejected through a majority vote.
The BJP government declined to accept the opposition party's demand for announcing a farm loan waiver, saying there is no need for such a measure as cultivators in Gujarat repay 95 per cent of the amount borrowed by them every year.
Unhappy with the BJP government's response, Congress MLAs created ruckus in the Assembly holding posters which read slogans like 'waive farmers' loans'.
Amid the din, Congress MLA Harshad Ribadiya tabled the 'Gujarat Farmers' Loan Waiving Bill'.
Speaking in the House, Ribadiya claimed farmers in Gujarat are reeling under a debt of Rs 83,000 crore, a claim refuted by Deputy Chief Minister Nitin Patel.
According to Ribadiya, there is an urgent need to write-off farmers' loans as they are suffering heavy losses due to high farming costs, scanty rainfall, taxes on fertiliser and agriculture equipment.
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"Farmers are incurring heavy losses and are unable to repay their debt. Farmers are also not getting sustainable prices for their produce.
"While only 25 per cent farm produces are bought by the government as per MSP, farmers are forced to sell the remaining 75 per cent produce in the open market at very low prices," claimed Ribadiya.
The Congress MLA pointed out that government in other states have announced farm loan waivers and Gujarat should follow suit.
"Farmers are under debt because they are unable to recover even the expenses they had incurred, let alone the profit. This is the time to do something for farmers.
"If other states can waive farm loans then why not Gujarat? I urge all the members of this House to rise above party line and approve this bill," the opposition legislator said.
Supporting the bill, Vikram Madam (Congress) asked the BJP government to take a cue from the erstwhile UPA government at the Centre which had waived farm loans of Rs 72,000 crore in 2008.
"Under the UPA regime, MSP for groundnut was Rs 1,200 a quintal. Now, it has come down to Rs 900. While the UPA government used to buy all the stock as per MSP, this government buys only 20 per cent stock as per MSP.
"Due to such a loss in income, farmers are being crushed under debt," said Madam.
Responding to Congress legislators, Patel accused the main opposition party of playing politics over the issue.
The Deputy Chief Minister dubbed the opposition party a "sinner" and "exploiter", which led to ruckus in the Assembly.
"The Congress needs to understand the difference between loan and debt. The problem arises only when the loan taken by the farmer turns NPA.
"You should stop labelling honest farmers as defaulters. You are known for doing politics in the name of farm loan waiver. You should seek an apology from farmers," said Patel.
"On an average, farmers in Gujarat take loans of Rs 45,000 crore every year. I want to tell you that 95 per cent of all the loans are being repaid in the stipulated time by farmers.
"The past Congress government at the Centre was a sinner and exploiter, which used to charge 18 per cent interest on loans. Our government is offering loans on zero per cent interest," said Patel.
The deputy CM's comments did not go down well with Congress members, who stood up from their seats and started shouting slogans against the BJP.
Leader of Opposition in the Assembly Paresh Dhanani asked Patel to take back his words.
Amid the ruckus, Speaker Nimaben Acharya asked Ribadiya to decide if he wants to withdraw the private bill or not.
When he refused, the bill was eventually rejected through a majority vote.