Farmers at risk as number of money lenders rises in Maha

The number of licensed private money lenders has increased by 22.5 per cent in Maharashtra, which the opposition says is a reason that farmer suicides will take place in greater numbers.

In the last three years, more than 8,000 farmers have committed suicide in the state. According to the Economic Survey of Maharashtra 2016-17, “In 2015, 1,589 new licences were issued while 1,947 licences had been issued in 2016. Private money lenders have disbursed Rs 1,254.97 crore in loans in 2016 as against Rs 896.34 crore in 2015. This is almost a 40-per cent increase in loan disbursement by private money lenders.” The state government tabled the Economic Survey 2016-17 in the state legislature on Friday.

Apart from national and cooperative banks, the private money lenders provide loans to individual farmers. Only licensed lenders are permitted to disburse loans to farmers. Raju Shetty, an MP of Swabhimani Shekari Sangathan, said that the national banks are blatantly refusing to provide loans to poverty-ridden farmers, which is why the latter had no option but to seek the help of private money lenders.

“The private money lenders disburse loans at a high interest rate. Besides, farmers also mortgage their agricultural land in lieu of loans. If they fail to pay the loan and interest amounts, the lenders easily assume ownership of the farmers’ land. Most of the farmers are landless today due to this unfair practice,” Shetty said.