State to streamline money lending to farmers, fix loan limit
MOTIVE The aim is to relieve farmers from vice of debts by proposing a series of measures to protect interests of the farming community
CHANDIGARH: The Punjab government has decided to streamline the system of money lending to farmers by fixing a limit on the loan on per acre of land and the rate of interest.
The state cabinet headed by chief minister Captain Amarinder Singh on Thursday approved the draft of the Punjab Settlement of Agricultural Indebtedness Bill, 2018, to be introduced in the monsoon session of the state assembly, beginning Friday.
The Bill, aimed at further “relieving the state’s farmers from the vice of debts”, proposes a series of measures to protect the interests of the farming community, saving them from the clutches of unauthorised money lenders who charge exorbitant rates to give unlimited amounts as loans, said an official spokesperson.
At present, most of the 15 lakh farmers and an equal number of agriculture labourers are under debt. Of these, 10 lakh farmers owe about ₹9,500 crore to banks and other financial institutions, which the government has promised to write off. However, there are no exact estimates of farmers’ debt towards arhtiyas (private money lenders).
With the enactment of the law, only licensed money lenders will be allowed to advance the money, with lending by others deemed to be illegal. Only these licensed money lenders will be allowed to move the debt settlement forums, which will be headed by commissioners. The lender would be required to submit proof of the amount lent
to the farmer.
It has also been decided to bring down the total number of debt settlement forums from 22, as per the existing Act passed in 2016, to five, said the spokesperson. The new forums would be constituted at divisional levels. This would help in ensuring a more systematic approach to handling farm debt cases.
The decision to amend the existing law on farm loans has been taken to curb the growing trend of agricultural indebtedness, resulting in mismatch between the prices of agricultural inputs and minimum support price of agricultural produce.
The farmers raise loans from both institutional and non-institutional resources. However, while the institutional loans are regulated through various special legislations governing the institutions providing such loans, non-institutional loans
are largely unregulated having no mechanism for redress of debtor’s grievances.
CABINET OBSERVES 1-MINUTE SILENCE IN MEMORY OF KULDIP NAYAR
The cabinet observed one-minute silence as a mark of respect to veteran journalist and noted writer Kuldip Nayar.
The cabinet described Nayar as a multifaceted personality, who served in different capacities as a diplomat and parliamentarian. Besides being a fine human being, he was an erudite author, it noted.
Recalling his remarkable services as a son of Punjab, the cabinet said that Nayar would be remembered by one and all for his efforts in strengthening Indo-pak ties, besides fostering love, peace, brotherhood and amity between the people of both nations.