Rajasthan: Congress delivers BJP promise, frees farmers

Following in the footsteps of Madhya Pradesh and Chhattisgarh governments, chief minister Ashok Gehlot waived off loans of some 50 lakh farmers in Rajasthan on the first day after assuming office.

The state government has decided to waive off farm loans up to Rs 2 lakhs. The decision stands implemented with immediate effect. “The waiver will cost the state exchequer Rs 18,000 crore,” a government official said.

Talking to journalists, chief minister Ashok Gehlot said that all loans taken by the farmers from cooperative banks will be waived off. Loans taken by farmers from nationalized banks, rural banks and private banks will be waived off upto a maximum limit of Rs 2 lakh, Gehlot said.

He said, “the farmers are committing suicides in state which was never heard of.” He said the beneficiaries can get their loans taken till November 30, 2018 written off. The decision stands for all short-term loans taken by farmers in state, he added.

Following the announcement, Rajasthan becomes the third Congress-ruled state after Madhya Pradesh, which waived off farm loans upto Rs 2 lakhs, and Chhattisgarh where short-term agriculture loans of over Rs 6100 crore of more than 16 lakh farmers taken from cooperative banks and Chhattisgarh Gramin Banks till November 30, 2018 to write off the farm loans.

This is the first official order of the Gehlot government after assuming charge. Gehlot had been busy working out the plan for the farm loan waiver since he was sworn in on Tuesday. On Wednesday evening, he had a marathon meeting with chief secretary DB Gupta, officials of department of finance and the cooperatives to finalise the waiver plan.

Speaking to media persons outside the CMO he criticised the previous BJP government and said the party leaders did not fulfil their promise and that their loan waiver scheme was a hogwash and the farmers didn’t get their due.
He mentioned that congress president Rahul Gandhi had promised that farm loan waiver will be done in 10 days after assuming power and the same was incorporated in the Congress manifesto.

Earlier, on Monday, Congress president Rahul Gandhi had said that he will not let Prime Minister Narendra Modi sleep until all farms loans were written off.

The newly-formed Congress governments in Madhya Pradesh and Chhattisgarh had announced farm loan waiver within hours of taking charge. The AICC president has been reminding the state governments in Chhattisgarh and Rajasthan to waive off the loans after Madhya Pradesh chief minister Kamal Nath announced the writing off of all debts of the farmers up to Rs2 lakh.

Points to note

To benefit nearly 59 lakh farmers

• Rs 19k CR is the amount that state govt will bear after the waiver
• Loans of up to Rs 2 lakh have been waived off with immediate effect
• Farmers who have borrowed money from cooperative, private and nationalised banks are eligible for the waiver
• They can claim waiver of loans taken up to November 30, 2018.
• Around 59 lakh small and marginal farmers are expected to benefit from the scheme
• The decision would cost the state government Rs19,000 crore.