A furious farm rights activist and VNSSM chairman Kishore Tiwari issued an ultimatum to the banks to meet their crop loan targets.
Given that over 500 debt-ridden farmers ended their lives this year alone in Maharashtra, thanks to sweeping agrarian crisis due to century's worst-ever drought in state, one would assume that the access to rural credit must be easened. Yet, it turns out that nationalised banks in Maharashtra have disbursed barely 10% of the crop loan targets issued by the state government for the kharif season of 2016-17. This finding came to light after a review meeting of the state-level bankers' committee (SBLC), held by the state-sponsored Vasantrao Naik Sheti Swavalambi Mission (VNSSM), in Pune on Monday.
A furious farm rights activist and VNSSM chairman Kishore Tiwari issued an ultimatum to the banks to meet their crop loan targets. "If any farmer commits suicide for want of a bank loan, the mission will treat the case as culpable homicide and seek action against the officer concerned," he warned and added, "No farmer should suffer because of red-tapism."
He told dna: "Nationalised banks are always eager to offer the same rich people who have failed to repay huge existing loans even larger ones. And the same banks are hostile to farmer issues and are working against farmer interests."
Interestingly, the state government had recently waived the condition of submitting a no-objection certificate (NOC) from banks and societies while seeking fresh crop loans. It also decided to waive the stamp duty on the mortgage by farmers for availing crop loans. The easy crop loan distribution scheme was launched from Wagda village of Kelapur tehsil from May 17 after chief minister Devendra Fadnavis assured on April 28 that state would ensure credit supply to even those farmers who had defaulted on loan repayments after 2012. Such farmers were to be given crop loans afresh on or before May 31, after their defaulted crop loan rehabilitation is done.
Accordingly, banks like Maharashtra State Cooperative Bank and Bank of Maharashtra were instructed to release crop loans to the farmers on the filing of an affidavit and not to insist on an NOC from banks and societies. However, on the ground, Tiwari pointed out that nationalised banks were defying government orders. "They are not cooperating at all. They are seeking search reports and compulsory mortgages from farmers."
The Maharashtra government has targeted a disbursal of crop loans worth Rs 53,282 crore to farmers in the state this season. Of these, district cooperative banks are expected to disburse crop loans worth Rs 17,505 crore while Rs 29,151 crore is expected to be disbursed by commercial and other banks. The share of nationalised banks for crop loan targets was increased to 65% from 30%.
Tiwari also cited several instances of officers responsible for approving loans and meeting crop loan targets going on officially approved long leave. "This shows how it is not only the point person but the entire banking system which is pushing farmers to take their lives."
When dna reached out to State Bank of India for comment, officials insisted that they had increased the number of people getting loans. Unwilling to either share data or go on record a senior officer said: "This is height of summer when all farming comes to a standstill. Officers will be on duty from June when the first rains arrive."
Tiwari lamented how distressed farmers were being forced to go back to money lenders and fall into debt traps again. "These money lenders are often in cahoots with bio-tech majors who sell GM seeds and fertilisers and pesticides. They offer loans only to farmers who are willing to plant what they suggest and directly adjust the amount against what they provide in kind."
The state government has projected a total farming area of 15.2 million hectares for the 2016-17 kharif season compared to 13.3 million hectares the previous season. Marathwada and Vidarbha regions of the state will lead the shift in cultivation from commercial crops such as cotton and soybean to foodgrains, particularly pulses like tur dal. "But the lack of access to rural credit has meant that this too will fail. The bio-tech majors stand to lose if farmers stop going for cash crops. By funding money lenders, they keep the farmer on a leash," admitted a senior bureaucrat in the agriculture ministry.
Repeated attempts to reach the state agriculture minister Eknath Khadse drew a blank.
TISS director Dr S Parsuraman said he was saddened to see apathy of the banks even in the face of farmers' plight. "When banks want to act against poorest of poor farmers, they will go to any extent of confiscating his farm produce or bullocks or sealing his home. And yet the banks look away as millionaires loot the bank for Rs 6-7,000 crore and more and flee." He felt the RBI needs to step in to pull up banks which are being hostile to farmers.
503 farmer suicides (across state)
66 in Yavatmal
63 in Beed
60 in Akola
57 in Nanded
49 in Jalgaon
20 in Washim
14 in Amravati
– state government data, 2016
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