The Hindu Business Line : `Debt moratorium should help farmers'

A DEBT moratorium for a period of six months, if announced by the Andhra Pradesh, would come as a big relief to the financially `distressed' farmers in the State, according to AWARE, a non-governmental development organisation (NGDO).

The move would lead to prevention of harassment of farmers by the individual and institutional money lenders as well as banks, it said in a letter to the Andhra Pradesh Chief Minister Dr Y.S. Rajasekhara Reddy, on the recent spate of suicides by farmers, whose number has crossed the 100 mark.

A delegation from AWARE, including its Chairman and Managing Director, Mr P.K.S. Madhavan, who met the Chief Minister recently, said in the letter, "We understand that these institutions are harassing the farmers with not just the intention of recovery but also with an eye on the compensation."

After the generous announcement of compensation by the State Government, the harassment of farmers by these individuals and institutions has increased, they alleged.

The NGDO has a presence in 6000 villages in seven States and dominantly in 12 districts of Andhra Pradesh and works with the rural poor, especially tribals.

Another step would be to bring in suitable amendments to the Debt Relief Act for bringing in the insolvency clause for the farm loans such as any industry and commerce, it said.

The activity can be ruined by insolvency system but the individual can be saved and in due course rejuvenate. dy of farmers' suicides in Andhra Pradesh during the end of 1997 and first quarter of 1998 with a committee of experts drawn from the Universities of Agriculture, Osmania and Central as well as from the National Institute of Rural Development.

More Stories on : Farm credit | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NCDEX offers sellers provisions to deliver in 7 commodities

`Debt moratorium should help farmers'

Fish catch in DK, Udupi coast dwindles

Rubber flares up as monsoon hits tapping

Spot prices up

Murli Agro commissions power plant

Amul to expand liquid milk biz to other cities — Targets Rs 3,400-cr sales for current fiscal; looks at Pak for foray

Shanthi group to foray into coconut oil production

Global coffee output, exports seen higher

Weak demand pulls down cardamom

AP plans welfare schemes for farming community

G-20 alliance meet to break deadlock in WTO farm trade talks