Farmers’ dependence on private moneylenders shows a sharp rise in terms of amount disbursed and number of people availing the loans by mortgaging goods.
Farmers’ dependence on private moneylenders shows a sharp rise in terms of amount disbursed and the number of people availing the loans by mortgaging goods, often their agriculture land.
The state economic survey for (2011-12) has recorded a 22% increase in farmers depending on private money lenders. The total number of farmers seeking aid from moneylenders was 6,77,165 in 2011 compared to 5,55,018 in 2010 — an increase of 1,22,147 farmers.
The budgetary provisions of Rs300 crore to Vidarbha by the Centre in the recent budget (2012-13) and state government’s package of Rs1,050 crore (2011) has failed to give any relief to farmers. Money lenders charge high interest rates between 20% and 35% .
“The situation is alarming as it shows credit disbursements through government organisations, which are not adequate to meet the farmers’ financial requirements,” said a senior secretary in the agriculture department.
He added that the farmers are forced to go to private moneylenders as cooperative banks disbursing loans have some guidelines, which cannot be waived to meet farmers’ individual requirements. The government has indicated that moneylenders cannot mortgage farmers’ land for loans, but this is not followed.
Vidarbha Jan Andolan chief Kishore Tiwari said the agrarian crisis was an outcome of wrong policies by the government. “This has resulted in financial loses, driving farmers to greater dependence on private moneylenders. Often farmers sign the papers saying he has willingly sold his land to the money lender after failing to repay the debt of an interest up to 40%.”
Tiwari laments that moneylenders are governed by strict laws which are never followed, thus giving them a long rope to exploit the helpless farmers.
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