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A one-man committee report says that it is the relatively better off western Maharashtra region and not the crisis-plagued Vidarbha region of the state that has benefited most from government loan waivers. Farmers in western Maharashtra got 53.8% of the loan waiver; those in Vidarbha just 20.01%
The one-man committee set up by the Maharashtra government in November 2007 to examine implementation of relief packages to distressed farmers and report on the overall agricultural scenario in the state has been critical of both the manner in which loan waivers have been disbursed and the quality of government aid packages.
The report of the one-man committee of Pune University Vice Chancellor Narendra Jadhav, which was submitted to the state Cabinet on August 6, 2008, says that it is the relatively better off western Maharashtra region and not the crisis-plagued Vidarbha region of the state that has benefited most from the loan waiver. Farmers in western Maharashtra got 53.8% of the loan waiver; those in Vidarbha just 20.01%.
The panel report says that farming has become unprofitable in Vidarbha due to lack of irrigation, inadequate credit for farmers, lack of non-agriculture-related activities to supplement farm incomes, and harassment by moneylenders.
Maharashtra is a beneficiary of the prime minister’s Rs 3,750 crore package and the state’s Rs 1,075 crore package for farmers. The report found that only 23% of the former was utilised to provide direct relief to distressed farmers and emphasised that preference must be given to measures that provide immediate relief.
Other findings of the report: - Sufficient awareness was not created among farmers regarding the aid packages.
- 40% of important posts in the agriculture department remain vacant.
- No independent entity to implement aid packages results in lack of coordination among departments.
- Several irregularities, such as middlemen accepting commissions in relief disbursement.
- Poor implementation of aid, such as mulch animals being given to farmers without ascertaining whether they have the means to maintain the animals and without providing veterinary support.
- Sub-standard agricultural implements bought, and at higher than market rates.
Apart from recommending that administrative glitches be ironed out and an inquiry instituted into the irregularities, the report made the following specific recommendations: - Pre-1997 loans should also be waived; instead of a blanket waiver for 2007-08 loans, these should be rescheduled and fresh loans given for 2008-09.
- Farmers from the Vidarbha, Marathwada and Konkan regions should be given special concessions.
- A one-time settlement should be made applicable across the state, and dryland farmers should get the benefit of the waiver irrespective of the size of their holdings.
- The Rs 20,000 upper limit for waiving loans for farmers holding more than five acres should be increased to Rs 50,000, except for farmers in western Maharashtra.
Finally, the report emphasises that loan waivers are only a short-term measure and will not solve the state’s agrarian problems.
Source: The Indian Express, August 7, 2008
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