Vidarbha farmers may get loan waiver

MUMBAI: There may be a glimmer of hope for Vidarbha’s distressed farmers. The Centre is considering a proposal to waive loans for them. Indicating this on Sunday at Akola, one of the districts that has seen substantial number of farmers’ suicides in Vidarbha, Union agriculture minister Sharad Pawar admitted that none of the packages announced so far has really worked in arresting farmers’ suicides. “Complete loan waiver would be the solution to end the farmers’ financial woes,” Mr Pawar said. According to him, the Union government is considering this option. “The issue is being discussed,” he said.

So far, close to 1,000 farmers have ended their lives since Prime Minister Manmohan Singh announced a Rs 3,750-crore special relief package for the region in July 2006. The PM’s scheme offered farmers an interest waiver of over Rs 700 crore. Moreover, they have been allowed to defer their old loan repayment until two years from now and even after that, they can pay in instalments.

“But nothing seems to have worked. Offering complete loan waiver could be the last resort for the farming community,” a government official said when asked to comment on Mr Pawar’s suggestion.The Opposition, Shiv Sena, BJP along with some from the ruling Congress-NCP combine too have been demanding a complete loan waiver.

Referring to suicides by farmers in several states, including the Vidarbha region of Maharashtra, Mr Pawar said the government had launched a Rs 16,000-crore programme to improve the financial condition of farmers to tackle the situation. “Though incidence of suicide has come down as compared to three years ago, but as long as a single farmer takes his life for non-repayment of debt, there is the need for government’s intervention,” he said.

Recently, President Pratibha Patil too expressed concern at the spate of suicide by farmers in the Vidarbha region. Ms Patil, who hails from Amravati — worst hit by the phenomenon — said farmers’ suicide was unfortunate and a matter of great concern. The President said she had discussed the farmers’ suicide issue with Mr Pawar as well as state authorities and also suggested a few measures for the effective implementation of the PM’s financial package to bail out the farmers.