The government should step in and intervene in these matters, the apex court said
Financial institutions were advised by the Supreme Court not to take coercive actions to recover loans from farmers in cases of crop failure. The government should step in and intervene in these matters, the apex court said. The advisory came even as a farmer killed himself in Kota, Rajasthan, over the failure to get a good price for his crop.
A bench comprising Justices Dipak Misra and AM Khanwilkar said the Centre's approach should be preventive rather than compensatory. The Centre must "travel the last mile" to reach out to the farmers, the top court said.
The top court made these remarks as they were hearing a PIL filed by farmers from Tamil Nadu. It is the government's job to prevent the suicides and not compensate them after the act, the court observed.
Representing the Union, Additional Solicitor General PS Narasimha was asked by the bench to devise a mechanism wherein farmers could go to the government seeking help in the event financial institutions took coercive action against the them in case they defaulted on their loan.
Administrative action must be taken to get rid of the middlemen, who purchase produce from farmers at throwaway prices, and buy their crops at least on minimum support prices, the court said.
However, Narasimha reminded the court about the government's Pradhan Mantri Fasal Bima Yojana by which farmers are compensated at a minimum premium and said the present situation has undergone a sea change from earlier times.
He said under the insurance scheme now, the burden of premium was being shared by both the state and the farmers. The government has devised a multi-pronged strategy to increase the income of farmers and ensure their security by an insurance scheme, the ASG added.
Narasimha also said that Reserve Bank of India (RBI) had framed guidelines for the banks for recollection of loans in this case.
To this, the bench responded by saying that it was not interested to know about the insurance business, but common sense and prudence dictated that the present case cannot be a premium-based business and such a stand should not drive the government's policies. "Job of the Executive is to ensure that farmers suicide does not happen. It should be dealt just at the ground level. This should not happen at all," the apex court said.
The bench posted the matter for further hearing on August 4, asking the state government to file a detailed reply.
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