Sena-BJP slams debt-relief package, seeks loan waiver

MUMBAI: The Rs 3,750-crore relief package announced by Prime Minister Manmohan Singh in Vidarbha last week was sharply criticised by the opposition Shiv Sena-BJP in both the houses of the Maharashtra legislature.

The opposition, which was allowed to move an adjournment motion suspending the question hour to hold discussion on farmers’ suicides, claimed that the package does not address the root causes behind the agriculture crisis.

The opposition claimed that the real problems were the farmers’ inability to repay debt, lack of irrigation and employment opportunities in the hinterland, a poor agriculture growth rate, and inadequate budgetary allocation for rural development.

The opposition demanded that the Centre should announce a debt waiver with a certain ceiling on debt, an irrigation package for dry-land regions, and direct credit facility for farmers.

In the legislative assembly, senior BJP leader Gopinath Munde led the opposition charge. Mr Munde said that several studies have proved that not more than 30% of the total cultivable land in the state could be brought under irrigation even if every drop of water was conserved.

“This means the state has 70% of the dry-land region which is reporting suicides. There should be a package for this entire dry-land region,” Mr Munde demanded. The BJP leader said the average land holding in the state had gone down to less than 5 acre. “Farming has ceased to be a profitable occupation with this meagre land holding. We need to provide these farmers with jobs,” he added.

Mr Munde said that though the Prime Minister has announced interest waiver and fresh credit for farmers, both these sops would be rendered meaningless by the ground realities. “About 89% of farmers are under debt. This makes them ineligible for fresh loans. Unless their debt is waived off, they won’t qualify for fresh loans,” he said.

The BJP leader also called for putting in place a direct lending system for farmers. “At present, we have a four-tier system in which Nabard lends at a meagre 2.5% interest.

But by the time this loan reaches a farmer through the four tier system of Nabard, state co-operative bank, district co-operative bank, and agriculture credit society, the interest shoots up to 14%. There has to be a singular credit lending agency,” Mr Munde demanded.

Leader of the opposition Ramdas Kadam said the Prime Minister had announced a mere Rs 2,000 crore for irrigation projects in Vidarbha when the dry-land regions of Vidarbha-Marathwada-Khandesh needed an immediate investment of Rs 15,000 crore in the irrigation sector.

“Even this sum of Rs 2,000 crore is to be spent over a period of three years. How is that going to stop suicides,” he asked. Mr Kadam sought to know the status of a proposal to make agriculture credit available at 6 % rate of interest.

In the legislative council, BJP leader Nitin Gadkari mounted attack on the government. Chief Minister Vilasrao Deshmukh is expected to give a reply to the motion.