‘Govt giving best deal under the current financial circumstances’
CHANDIGARH: The Congress government’s crop loan waiver scheme has left a section of the debt-ridden farmers disillusioned. A watered down scheme, delay in implementation and logistical glitches are not the only problems. The government hasn’t been able to give clarity on bank loans and the implementation timeframe. The opposition AAP and Akali Dal have rejected the scheme. HT spoke to agriculture expert and ex-chairman of the Commission for Agricultural Costs and Prices (CACP) T Haque, who headed a three-member committee to assess farm debt and suggest ways for its waiver, for his views on the scheme and subsequent reactions. Excerpts:
There is mismatch between promise and policy. What do you think of the waiver scheme?
The scheme clearly reflects the intention of the government. If you compare it with similar debt waivers announced by the governments in Uttar Pradesh and Maharashtra, the Punjab scheme is much better. UP decided to write off loans up to ₹1 lakh, whereas it is up to ₹2 lakh in Punjab. Then, the state has also decided to take over the outstanding crop loan from institutional sources of families of farmers who committed suicide.
Why are the farmers not happy?
This is not true. The state government is facing financial constraints, but it has not let these come in the way of its debt waiver promise. This is the best it could do in the circumstances. The government has made the start with outstanding crop loans of marginal farmers with cooperatives. It will take care of crop loans from banks too.
What about steps suggested by your group for raising funds?
Tax on liquor and bonds for NRIs are some of the steps suggested. Punjabis are doing extremely well abroad. Government has the option of floating long-term bonds to raise funds. I have been having discussions. It is considering various options.
The state has sought help from the Centre. Is there progress?
We looked at the financial situation. There was not much room for borrowing. The state has requested the Centre for assistance, besides easing the borrowing cap. There has been no response in giving financial help to the state on loan waiver.
Is loan waiver the answer?
Farmers’ demands are genuine and they need support, but loan waiver alone cannot solve the problem. Cost of production is increasing and the returns are not adequate. A long-term strategy is needed to make agriculture sustainable.