The Hindu Business Line : Maharashtra Govt weighs options to rescue farmers in distress

THE Maharashtra Government is examining two options to provide relief to the farmers now in distress, indexed by a spate of suicides: Waive interest on loans availed through the cooperative sector over a specified period or temporarily stay the obligations, liabilities or debts of the farmers for a specified period.

However, a well-placed source said the Cabinet at a meeting on Thursday "may not opt for an across the board stay on liabilities since it would intrude into the viability of the cooperative institutions''.

In all likelihood, as the Chief Minister, Mr Sushilkumar Shinde, has often said, the decision would be on an interest waiver.

Officials have whetted both the options and the Cabinet note has been prepared but the "complications of the other option of staying all liabilities, even temporarily would involve every source of a loan''.

It would be far too cumbersome and may see banks, especially the cooperatives, making a beeline for the courts. An interest waiver, especially on cooperative loans, would require the Government, despite its stretched resources, to pick up the tab on behalf of the farmers. Not all cooperative banks at the district level are exactly in the pink of heath.

According to official figures, the number of suicides this year have been131 but "only 40 are of farmers oppressed by debt''. The suicides since 2001 have been 405. "Even 40 debts'' — disputed by NGOs and after field visits by the media and put at much higher levels — "is certainly a wake-up call'', an official conceded.

The kharif loans last year, according to rough estimates, is around Rs 1,100 crore and this year, it has been of the order of Rs 1,042 crore and the Ministry has to decide whether the interest waiver would be limited to the interest on loans taken last year, including for the rabi crops.

Informally, some ministers have already suggested — and would raise it at the Cabinet meeting — that the interest waiver should cover more than a single year for the simple reason that agriculturists' debts have been disquietingly large because of a drought last year and delayed monsoon leading to third attempt at sowing this year.

Above all, the other key consideration is that in weeks, the State would go to polls to elect a new Legislative Assembly.

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Maharashtra Govt weighs options to rescue farmers in distress