The recent announcements of farm loan waiver in neighbouring Madhya Pradesh and Rajasthan could trigger a demonstration effect as farmers in Gujarat have revived their demand for more State assistance including a loan waiver.

Even as the State government has declined any possibility of farm loan waiver , the Chief Minister Vijay Rupani recently announced a drought relief package of ₹2,285 crore, covering about 23 lakh farmers from 96 taluks.

However, farmers consider this relief to be too small to cover the massive crop failure in Saurashtra and North Gujarat regions.

Farm distress in Saurashtra

“This amount is insufficient as it doesn’t even cover the costs incurred on the crop. On one side, prices of all the commodities are rising rapidly, and we are unable to cover even the losses. This is a double blow to farmers. Most of us in the Saurashtra region have faced almost a failed kharif season and also a weak rabi. There is a need for increased financial assistance including a loan waiver,” said Kishor Ghatoliya, a farmer from Padadhari taluka of Rajkot district.

Reports indicate over a dozen farmers have allegedly committed suicide in Saurashtra region since September this year due to farm distress. In this backdrop, demand for a farm loan waiver has gained momentum.

Sagar Rabari, a farmer leader, stated that affected farmers in Gujarat are increasingly getting alienated from the government. “They are losing faith in the government mechanism. The cumulative outstanding of the agriculture loan is over ₹82,000 crore in Gujarat,”said Rabari, who is taking out a farmers’ rally from Karamsad in Anand to Sabarmati Ashram next month to raise demands including loan waiver, better prices and farmer-friendly government policies.

Waiver, no use

However, BJP-backed farmers’ body, Bhartiya Kisan Sangh (BKS), has expressed apprehension about the actual benefit of farm loan waiver. As per the announcements in the other States, loans outstanding as on March 31, 2018 would qualify for the farm loan waiver.

The farmers in Gujarat, have most of the outstanding farm loan taken post March 2018, which makes them broadly ineligible for the loan waiver.

“Farmers in Gujarat are more disciplined than other States when it comes to repaying the bank loan. They would borrow money to keep their bank statement clean and maintain their eligibility for the zero per cent interest facility. Hence, most of the farmers in the State have cleared their loan up to March 2018. And now they have fresh loan outstanding, which will not qualify under the waiver,” said Vitthal Dudhatara, President of Gujarat unit of the BKS.

“Instead, the government needs to provide better relief package and increased financial assistance. Farmers don’t have the money for next year’s crop. They are unable to borrow from the bank, so they will turn to merchants and sink into the debt trap,” he added.

“Farmers had high hopes from the State. The drought relief package is disappointing,” added Dudhatara. The Gujarat government, meanwhile, has announced that drought-affected farmers will be given all assistance including subsidised fodder for animal among others.

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