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The figures muddy claims of massive increases in rural credit More farmers being pushed towards moneylenders MUMBAI: India has seen the closure on average of one rural branch of a scheduled commercial bank (SCB) every single working day for the last 15 years. In the same period, bank branches in urban metros doubled, opening at a rate of more than one every day. The figures muddy government claims of massive increases in rural credit and plans to boost it. The Reserve Bank of India’s Handbook of Statistics on the Indian Economy (2006-07) shows there were 30,639 rural branches of SCBs in 2007. That is, 4,750 less than the number in 1993. In other words, an average of 26 bank branches shut down each month, or one every working day. However, branches in metros shot up from 5,753 to 11,826 in the same period. In other urban centres, the number climbed from 8,562 to 12,792 in this period, while also going up in semi-urban locations from 11,356 to 16,214. Bankers and RBI officials argue that these are not all closures but “consolidation,” or “mergers” or the creation of satellite offices. The fact remains, though, that there were 4,750 rural branches less in 2007 than at the start of the reforms period. The trend holds through most of UPA years. Indeed, 2006 saw the sharpest drop, with 1,503 branches shutting shop at a rate of one every six hours, on average. The rapid decline has pushed more farmers towards moneylenders. “If you ‘merge’ a couple of banks 200 kilometres apart,” says Devidas Tuljapurkar of the All-India Bank Employees Association, “how does this make life easier for villagers already journeying far to their banks? It just rules them out. And it is absurd to say that more ATMs have opened to fill the need. ATMs are mostly in cities.” Also, loans are not given at ATMs. The share of rural credit as a percentage of total credit disbursed by all SCBs (including Regional Rural Banks) stood at just around 7.93 in March 2007. Less than the previous year’s 8.39 per cent. Much less than the 10 per cent it stood at in 2001. And farmers account for only a part of it. ‘Rural credit’ includes many sectors beyond agriculture. The 2001 Census says 72 per cent of Indians live in rural areas. However, the share of urban and metro regions in total credit went up to 82.32 per cent in the same period as the closures. © Copyright 2000 - 2008 The Hindu |
Saturday, March 29, 2008
4,750 rural bank branches closed down in 15 years -P. Sainath
Friday, March 14, 2008
Farm bonanza fails to save India's dying farmers-reuters repo rts
Farm bonanza fails to save India
Thu Mar 13, 2008 8:03pm EDT
http://www.reuters.com/article/latestCrisis/idUSDEL274459
By Krittivas Mukherjee
PIMPARKHUTI,
By the time the minister finished announcing a $15 billion loan waiver to give a new lease of life to millions of indebted farmers, the poison had snuffed the life out of Chauhan.
Over the next few days, while experts debated the efficacy of the staggering relief package, 60 farmers killed themselves, adding to a morbid official statistic: more than 150,000 Indian farmers committed suicide since 1997 unable to repay crop loans.
Though the crisis has been building for years, it presents a grave challenge for Prime Minister Manmohan Singh ahead of national polls next year. Farm distress and soaring prices helped turf out the previous government in 2004 and put Singh in power.
So, Singh's government came up with a plan in the 2008-09 budget: cancel debts of small farmers with loans overdue on Dec. 31, 2007, and which remained unpaid up to Feb. 29.
The write-off came with riders. Beneficiaries can own up to two hectares (five acres) and only bank loans will be cancelled.
This has meant nearly a quarter of 40 million targeted farmers will not benefit because most borrowed from rapacious moneylenders or they own larger tracts of land.
"It's a lose-lose proposition. This will not relieve farmers' distress," said Kishor Tiwari, who leads a campaign against farmers' suicides across the arid plateaus of central
A map of the region, known as Vidarbha, hangs on Tiwari's office wall. Its most prominent markings are a profusion of black skulls, forming a grim diagram of death.
Here, across the black cotton-bearing soil of Vidarbha, far from the gleaming malls that symbolise
SUICIDE EPICENTRE
More than 30,000 farmers have killed themselves in the region alone since 1997, making it the epicentre of
But relief is still a distant dream for a majority of farmers here because their average holding is just above two hectares. And small and marginal farmers will not benefit because most of them borrowed from moneylenders and relatives.
Its the same story in the northern Punjab state, considered
As in Vidarbha, the southern states of Andhra Pradesh and Karnataka, which have reported thousands of farmers' suicides, have dry croplands where large holdings are unviable for a farmer with limited access to irrigation and loans.
The National Sample Survey Organisation says almost half of
Even though farming supports 60 percent of
Economic liberalisation since 1991 has not helped either, with duties being gradually phased out and farmers facing tough competition from heavily subsidised European or American growers.
In the past, farmers used to sell to the government at a price fixed in advance, but that safety net was removed for cotton growers in 2005, leaving them at the mercy of middlemen who often browbeat them into unprofitable sales.
DEBT CYCLE
Bad weather and falling prices only compound debts.
Farmers are often underfinanced by banks, forcing them to turn to private lenders whose usurious interest rates bind them to a never-ending cycle of debt. Many also borrow unwisely to fund lavish spending or to pay for weddings.
Unable to get credit, Kisan Vithalrao Rahate used a plastic rope to hang himself from a tree at the threshold of his mud house in this Vidarbha village this month.
Rahate lost two batches of seed to a bad monsoon. Last year the crop was good, but still not good enough to pay off his debts and then subsist with his family of six until the next harvest.
"We fought over money but he never threatened to kill himself," Kunda Kisanrao, his widow, told Reuters, squatting on a mud courtyard fenced with twigs and thorny shrubs.
Rahate carried two debts at the time of his death: a $350 bank loan and $1,250 borrowed privately to buy expensive genetically modified seeds and fertilisers to stay competitive.
A 2006 study by the Mumbai-based Indira Gandhi Institute of Development Research, found that 86.5 percent of farmers who took their own lives were indebted -- their average debt was about $835 -- and 40 percent had suffered a crop failure.
But Prime Minister Singh is defending his scheme.
"It will allow the fresh flow of institutional credit to farmers, it will clean up bankers' balance sheets, it will stimulate economic activity in rural areas, and I don't make any apologies on this," he told the parliament this month.
The scheme will benefit farmers in the states of
Agricultural scientists say state support for agriculture is imperative, calling for help with soil and water management, timely credit and subsidised seeds and fertilisers.
"In the name of liberalisation state support was withdrawn completely and the vacant space has been occupied by the private sector in an unregulated manner," said K. Nagaraj of the Madras Institute of Development studies.
In Pimparkhuti village, Rahate's wife cares little for the hair-splitting debates. For her, it's a struggle to survive with her two daughters and a 2-year-old son.
"My mind is blank, I don't know what to do," she said, staring at the tree her husband hanged himself from.
"He escaped his misery. Now what do we do?"
(Editing by Simon Denyer)
Tuesday, March 11, 2008
Budget can’t write off vidarbha farm suicides
Budget can’t write off suicides | |
| SATISH NANDGAONKAR AND G.S. RADHAKRISHNA | |
March 10: Ghanshyam Mirge, 38, of Akola in Maharashtra and 35-year-old Jayarami Reddy from Andhra’s Kurnool had a lot in common — both are young farmers owning around 8 acres, steeped in debt and not eligible for P. Chidambaram’s loan waiver. The similarity doesn’t end there: both took their lives last week. Satyanarayan Reddy, also from Kurnool, had around 4 acres, which qualified him for a waiver. But since most of his money was owed to moneylenders who had put him in jail and now threatened to get his wife arrested as well, Reddy, too, killed himself. As did Kashinath Belure (60) of Bidar in Karnataka. He would have got a total loan waiver but for the fact that he was indebted to moneylenders. Nearly 60 farmers have taken their lives in India’s death bowl since Chidambaram announced the farm loan waiver 10 days ago. Questions have been raised about the largesse because the complete loan waiver is limited to the 3 crore marginal and small farmers owning up to 2 hectares (4.9 acres). Those with over 2 hectares — around 1 crore farmers — will get a 25 per cent discount for a one-time settlement. Economists had also pointed out that farmers had borrowed heavily from moneylenders as well, and the government had no answers to that. The highest number of deaths has been reported from Andhra, where 35 farmers have committed suicide since February 29, when the finance minister unveiled the waiver plan in the budget. Barring a couple, all the farmers owned over 5 acres, which meant they had to cough up 75 per cent of the money. At least 22 farmers killed themselves in Maharashtra’s Vidarbha region, among the worst hit by the debt cycle, while two deaths have been reported from Karnataka. All the Vidarbha farmers had over 5 acres of land. The Vidarbha Jan Andolan Samiti, an NGO based in the Pandhakavda region of Yawatmal, the Maharashtra district with the highest number of suicides, said the announcement has had little impact on the farmers who grow cotton and are burdened with loans from banks as well as private moneylenders. Like Kisan Uike, 32, who consumed pesticide in Khadki village, 50km from Nagpur. Uike, the owner of around 8 acres, had an outstanding loan of Rs 43,000, which had ballooned to Rs 75,000 because of interest accumulation. “Twenty-two farmers have killed themselves since the budget. This indicates that the farmers have no faith in the government and its announcements,” said Kishore Tiwari, convener of the samiti, which maintains a “death register” of the suicides in six districts of Vidarbha. According to the samiti’s records, 80 farmers had killed themselves in January, 66 in February and, in March, the figure could be higher. Not all farmers are overjoyed by the waiver. Vidarbha’s farmers say their counterparts in western Maharashtra, whose land holdings are smaller and who have higher loan amounts, were likely to benefit more. Prabhakar Reddy of Marrikunta village in Kurnool, around 700km away, echoed them. “We don’t want any charity or freebies. Let the government organise agricultural credit during harvesting, subsidies in seeds and fertilisers. We will ensure that the loans are repaid in time,” he said. The majority of the deaths in Andhra has been of farmers badly hit by the recent unseasonal rain. Narne Rama Rao (45) had sown groundnut crop but the rains destroyed his livelihood and swamped him with loans of Rs 12 lakh. Narne did not take his life, he died of a heart attack. Leaders from the Congress, which hopes to reap the benefit of the scheme in the spate of elections to be held over the next 12 months, tried to soften the blow. Maharashtra chief minister Vilasrao Deshmukh said he would ask the Centre to either increase the ceiling to 15 acres or offset loans of Rs 50,000 for all farmers irrespective of land holdings. “The suicides and the loan waiver have no link,” said a Congress spokesperson in Andhra. |
Saturday, February 2, 2008
आत्महत्याग्रस्त शेतकऱ्यांच्या कुटुंबीयांना अन्नसुरक्षा द्या - किशोर तिवारींची न्यायालयाला विनंती
दहा दिवसात उत्तर द्या - उच्च न्यायालयाचे शासनाला आदेश
(आशिष बडवे )
नागपूर, ता. २ - विदर्भातील कापूस उत्पादक शेतकऱ्यांना अन्नसुरक्षा देण्यात यावी, अशी विनंती विदर्भ जनआंदोलन समितीचे अध्यक्ष किशोर तिवारी यांनी आज न्यायालयास केली. त्यावर शासनाने दहा दिवसांत उत्तर सादर करावे, असा आदेश न्यायालयाने दिला आहे. .....
शेतकऱ्यांच्या आत्महत्येकडे लक्ष वेधणारी जनहित याचिका उच्च न्यायालयातील न्या. ए. पी. लवांदे आणि न्या. अरुण चौधरी यांच्या खंडपीठासमोर सादर करण्यात आली आहे. याचिकेवर यापूर्वी झालेल्या सुनावणीत न्यायालयाने शासनाला विविध आदेश दिले आहेत. तर केंद्र व राज्य शासनाच्या पॅकेजनंतरही शेतकऱ्यांच्या आत्महत्या थांबलेल्या नाहीत, याकडे याचिकाकर्त्यांनी न्यायालयाचे लक्ष वेधले आहे. तेव्हा शेतकऱ्यांना तातडीने कशा स्वरूपात मदत करता येईल, त्याकरिता सूचना सादर कराव्यात, असे याचिकाकर्त्यांना सांगण्यात आले होते. त्यानुसार, विदर्भ जनआंदोलन समितीने काही शिफारशी न्यायालयाला केल्या आहेत. त्यात केंद्र व राज्य शासनाच्या पॅकेजची अंमलबजावणी करण्याकरिता वसंतराव नाईक शेती स्वावलंबन मिशनकडे पुरसे अधिकारी आणि कर्मचारी नाहीत, असे नमूद करण्यात आले आहे. तर येथे कायमस्वरूपी संचालकांनी नियुक्ती करावी, अशी मागणी करण्यात आली आहे. तर अंत्योदय योजनेत शेतकऱ्यांना नियमितपणे धान्यपुरवठा करण्यात यावा, असे नमूद करण्यात आले आहे.
दरम्यान, नोव्हेंबर २००७ पर्यंत ३,६७९ शेतकऱ्यांनी आत्महत्या केल्या आहेत, तर त्यापैकी केवळ १४,८८७ शेतकऱ्यांनाच शासनाने मदत दिली आहे. त्यामुळे २,०६४ शेतकऱ्यांच्या आत्महत्या शासनाने नाकारल्या आहेत. त्यामुळे या आत्महत्या शासनाने का नाकारल्या, त्याचे स्पष्टीकरण शासनाने द्यावे, अशी मागणी केली आहे. शासकीय वेबसाईटनुसार ९२ हजार ४५६ शेतकरी कुटुंबांमध्ये विविध आजार असल्याचे म्हटले आहे. त्यामुळे त्यांच्याकरिता तातडीने आरोग्य सेवा पुरविणे आवश्यक आहे. तर चार लाख ३४ हजार २९१ कुटुंब तणावाखाली आहेत. त्यांना या मानसिक तणावातून मुक्त करण्यासाठी उपाययोजना कराव्यात, विशेषत: सार्वजनिक वितरण प्रणालीतून त्यांना धान्यपुरवठा करणे आवश्यक आहे, असे न्यायालयास सुचविण्यात आले आहे. या शिफारशींवर शासनाने दहा दिवसांत उत्तर सादर करावे, असा आदेश देण्यात आला आहे. याचिकेवर २९ फेब्रुवारीला सुनावणी होणार आहे.
Sunday, January 27, 2008
VIDARBHA AGRARIAN CRISIS-agitation for farmers' loan waiver
http://www.hinduonnet.com/thehindu/holnus/015200801271653.htm
Nagpur (PTI): Launching a sit-in to press for waiver of crop loans taken by farmers in the Vidarbha region, NCP Rajya Sabha MP Datta Meghe and former union Minister Mohan Dharia said they would launch a national movement if their demand was ignored.
Meghe's socio-political outfit, Vidarbha Pradesh Vikas Parishad on Saturday organised sit-in programmes at district head quarters all over Vidarbha as part of agitation and threatened to launch an all India level agitation if the Centre and state ignore their demand for loan waiver of distressed farmers.
Meghe and Dharia said the budget was slated for Feb 28 and if the government did not make necessary provision and announcement of loan waiver, they would launch agitation from March 1. Organisations working in the field of agriculture and farmers would be involved, they said.
Leaders in the farmers agitation, Vijay Jawandhia of Shetkari Sanghatana, Vijay Morey, Prakash Pohare, Chief editor of Marathi daily Deshoaanti, Kishore Tiwari of Vidarbha Janandolan Samiti Ramdas Tadas, Sunil Shinde, both former legislators also addressed the gathering.
Earlier on Friday, Meghe and Dharia addressed similar meeting in Yavatmal and Wardha district.
Thursday, December 20, 2007
PIL ON THE ISSUE OF FARMERS SUICIDES
VIDARBHA JANANDOLAN SAMITI
11, Trisaran Society, In front of
Tel No. (0712) 2282457 / 9371137653 / 9822593943. Fax : 07235-227387
-----------------------------------------------------------------------------------------------------------
PRESS NOTE –
PIL ON THE ISSUE OF FARMERS SUICIDES :
PIL PETITIONER KISHORE TIWARI SUBMITTED BEFORE HIGH COURT DETAILED CHART/ STATEMENT FOR IMMEDIATE STEPS REQUIRED TO BE INITIATED BY GOVERNMENT IN THE MATTER OF FARMERS’ SUICIDE
====================
In compliance with the Order dated 7th December, 2007 passed by Nagpur Bench of Mumbai High Court, PIL Petitioner Kishore Tiwari today submitted before the High Court, a detailed statement/ chart containing the various immediate steps required to be initiated by the State Government in the matter of unfortunate incidence of Farmers Suicide in 06 districts of Vidarbha Regions. The submissions is made before the High Court as per the directions given by the Division Bench of High Court consisting Justice A.P. Lavande and Justice A.B. Chaudhari directing the PIL petitioner Kishore Tiwari, President of Vidarbha Jan Andolan Samiti, which is pursuing the cause of farmers crisis in Vidarbha Region to submit detailed statement/ chart highlightining issues which are required to be dealt with by the respondents - State Government, having regards to the statements made by the Government from time to time in the several Affidavits submitted in the matter of farmers suicide so that the better adjudication of the Petition can be made in the interest of dying farmers in the Vidarbha Region.
The detailed statement/ chart is submitted by the Petitioners counsel Adv. Sh. Firdos Mirza and Adv. Sh. Vinod Tiwari today before the High Court. The statement/ chart has the detailed chronological of events, the statement & figures submitted by the Government on Affidavits on various occasion from time to time pursuant to the Order passed by the Hon’ble High Court in the present PIL in the matter of continued farmers suicide in Vidarbha tally of which have been crossed 3700 farmers suicides, in last couple of years due to distress and plight arising out of successive crop failures and consistent increasing cost of production versus low yield & non remunerative prices to the cotton, rice and other crops. In the year 2007, so far 1172 unfortunate incidents of farmers suicide have been reported. The statement / chart submitted today is as follows:
1. February 2006 - The instant petition highlighting issue of unfortunate incidence of farmers suicides and inaction of the state machinery was filed.
2. 24th February, 2006 - This Hon’ble Court issued notices.
3. 05th June, 2006 - The respondents were granted last chance to file reply.
4. 14th June, 2006 - Because of the failure of respondents to file reply, the
5. 11th July, 2006 - The respondents tendered apology, hence the order of cost was recalled.
The government was directed to display the information regarding all steps taken by the government to avoid farmers suicide. It was directed that the information on the web site should include not only the steps taken but the information regarding the effect of such steps taken, the benefits and the beneficiaries of such steps and all the relevant information.
6. 26th June, 2006 - The State Government filed affidavit in reply on 26.06.06 with the following submissions /statements.
a) The state government is also implementing the directions and suggestions given by the Hon’ble High Court by its judgment dated 5th May, 2006 in addition to implementation of the package announced for the farmers in Vidarbha. (para 8)
b) the government is promoting Soyabean and other horticulture crops as alternate to cotton crop. (para.9b)
c) The State Agriculture Universities have not recommended cultivation of Bt. Cotton and the agriculture department is also not recommending yet. (para 9c)
d) There are 63 full time and 885 part time Inspectors are appointed in the state of
e) The rate of Bt. Cotton seeds was reduced (para 9h)
f) Rs.2.31 crore is to be spent on training and demonstration to be given to the farmers for improving productivity of cotton crop and for reducing the cost of cultivation. This training is in respect of varieties of cotton approved by the agriculture universities of the state, which does not include Bt. Cotton (para 9j).
g) Rs.240 crores have been disbursed to the farmers under the scheme of rescheduling of loans and waiver of interest. (para 9k)
h) Subsidy of Rs.1000/- per hector subject to a maximum of 2 hectors is extended. The scheme of community marriage is floated. The secondary occupation through animal husbandry, water conservation and integrated agricultural development is being promoted (para 9m).
g) The government has decided to make a village wise survey to identify all the families which are in a situation of acute distress. (para 9n)
h) One of the serious complaints relate to the provision of assessment to the suicide affected family. It is true that due to procedural issues many families did not get such assistance. The government has undertaken review of the suicide cases where the assistance has not been made available by constituting district level committees. In the review process almost 1000 families were given assistance of Rs.1,00,000/- each. (para 9o)
i) To provide crop loans at the rate of 6% interest. (para 9p).
j) The government has taken a decision that the farmers who have taken loan from unlicensed money lenders should not be under any obligation to repay these loans. (para 9q)
k) The state government has established Vasantrao Naik Sheti Swavalamban Mission for effective implementation of the entire package to address effectively the issue of farmer’s suicide. A senior government officer has been posted as the Director General of the aforesaid mission. (para 9r)
With regards to the claim made by the Government in the said affidavit, the Petitioner pointed out that he would like to refer to the Judgment dated 05.05.2006 delivered by Hon’ble Division Bench at Bombay Para 21.1(pg.25) in which it is observed that Interest on outstanding loans to be written off Rs.61 crores. The principal amount to be rescheduled over a period of next 5 years Rs.203 crores. To ensure implementation of the package in letter and sprit, the government will nominate an IAS Officer in the suppertime scale and designate him as Director General of the scheme. The
Petitioner further humbly submitted that :- The State since last 2 ½ years has failed to provide a full time Director General for implementation of the package. As on today also Commissioner Amravati is holding additional charge. Till today about six officers are changed though section 3 of the Maharashtra Govt. Servants Regulation of transfers … Act 2005 prescribes for normal tenure of the officer 3 years. The State has to immediately make arrangement for appointment of full time Director General for full tenure in compliance with the above judgment. According to affidavit dated 03.09.2007 the State has paid Rs.825 crores from P.M. package and Rs.240 crores from State package towards interest waiver. The total overdue as on 30.6.06 was Rs.1407 crores. The State has to make it clear how the amount as reflected in the judgment dated 05.05.2006 has increased in multi folds ? The State must place on record the results of village wise survey made by it to identify all the families which are in a situation of acute distress, along with the action taken report regarding the causes came on record for the distress.
The PIL Petitioner Kishore Tiwari made various suggestions by way of affidavit filed on 04th Aug. 2006 which contents long term and short term measures for betterment of the farmers
Immediate reliefs / steps required.
i) Establishment of the Nodal office at Yavatmal.
ii) Provision for credit facilities.
iii) Food security
iv) To create atmosphere of faith about government scheme in the farmers.
Long Term measures.
i) Reasonable support price to the farm products.
ii) Crop insurance scheme.
iii) Periodical review of the implementation
iv) Educating the farmers in respect of changing weather, changing crop system.
v) Quarterly audit of the funds disbursed.
On 07th Aug. 2006, after considering the affidavit dated 07.08.2006, the
a) The web site is being updated from time to time. It updated upto 30th June, 2007.
b) The suggestions given by petitioners have been replied, giving details of steps taken by government.
c) The state government is not giving compensation but providing ex-gratia assistance of one lakh to the family of the farmers who committed suicide.
d) State government is preparing detailed guidelines in view of National Agriculture Policy. District Level Agriculture Management Training Agency has been established.
d) Strategy Research and Extension Plans for all districts are prepared.
e) National Insurance Scheme is being implemented with additional benefits.
f) Prime Ministers Special Rehabilitatoin package provides for ex-gratia assistance, debt relief to farmers, credit flow, interest waiver, assured irrigation, seed replacement, micro irrigation, extension services and subsidiary income schemes. Status of implementation of the packages are on the website.
But the Petitioner pointed out that in Judgment dated 05.05.2006, Hon’ble Mumbai High Court directed the State to take a decision on whether the compensation fixed at Rs.One lacs should be suitably enhanced to ensure that a more realistic amount is made available to the members of the family of a deceased cultivator. However, the State Govt. till today has not increased the amount but now are stating that it is ex-gratia from Prime Ministers package.The Petitioner also prayed for the directions to the State Government to take a decision enhancing the compensation to be given to the farmers families.
06th Aug. 2007 - This
03 Sept. 2007 - In its affidavit dated 03.09.2007, the State Government submitted -
(1) The state package provides for :-
a) Arrangement for fresh crop loan
b) Subsidy on the crop insurance premium
c) Financial assistance to farmers for enhancing production and productivity.
d) Promotion of joint farming in cotton.
e) Encouraging subsidiary occupation like Dairy, Poultry etc.
f) Repayment of amount from Capital Formation Fund
(2) The Prime Ministers package aims at:-
a) Establishing a sustainable and viable farming and livelihood support system through debt relief to farmers.
b) Improved supply of institutional crop credit.
c) Micro irrigation
d) Assured irrigation facilities.
e) Watershed management.
f) Better extension and farming support etc.
(3) The total number of farmers in the six affected districts is 1764438 and cotton growing farmers 1205282.
(4) Cash Credit :- The survey conducted by the month of May, 2006 shows that the demand for loan by the farmers in six districts is nearly Rs.2975/- crores and during last financial year the agricultural credit amounting to Rs.2012 crores is distributed. The need of cotton growing farmers came out to be Rs.1200 crores. During 2007-08 till now Rs.1254 crores loan is distributed to 4.74 lakh farmers. Rs. 396 crores were distributed as refund of 3% of share capital under cotton monopoly scheme in the year 2006-07. In 2005-06 Rs.880 crores were distributed as annual credit which was increased Rs.2012 crores in the year 2006-07.
In this regard the Petitioner pointed out that affidavit shows that the outstanding amount of Rs.1407 crores overdue loan as on 30.06.06 was rescheduled. The interest waiver of Rs.825 crores has been given from P.M. package and of Rs.239.12 crores from the State package. This amount is much more than mentioned before the Hon’ble Division Bench at
(5) Procedure of repayment of Loan:-
a) The outstanding amount of Rs.1407 crores was overdue on 30th June, 2006 and was rescheduled.
b) Interest waiver of Rs.825 crores was given.
In this regard the Petitioner pointed out that affidavit shows that the Cash Credit Facility provided to the farmers in 6 districts of Vidarbha is substantially reduced during the year 2007-08. As against the demand of Rs. 3,186 Crores, only Rs. 1,254 Crores were distributed to the farmers. It is required that, all the farmers has to be provided with need based cash credit facilities, to in order to avoid the farmers being trapped in the net of private moneylenders and exploiters. The affidavit of Govt. shows that, there is considerable reduction in the cash credit outlay being made available for the year 2007-08. The concrete steps are required to be taken to increase the cash credit outlay atleast to Rs. 3000 Crores, so that maximum farmers to get advantage of cash credit facilities from the banks. As the outstanding amount overdues till continues, State to take further steps to reschedule the outstanding amount overdue for a further period of atleast 3 years, as the farmers needs such support at this stage.
The affidavit of the Government says that One year moratorium is given for the repayment of loan amount but for the loan disbursed during 2006-07 borrowers were to repay the loan before 31.03.2008. In this regard Petitioner pointed out that the state has to make a positive statement that the period of moratorium and interest rate is incompliance with the policy and guidelines of Reserve Bank of India and the NABARD and also to take further steps to provide extra moratorium period in view of the extreme crisis faced by the farmers in 6 suicides prone districts of Vidarbha.
(6) On the issues of Kisan Credit Cards Government claimed that it has 6.59 laks KCC distributed.in the year 2005-06 and 3.80 laks KCC in the year 2006-07 distributed. The Government also claimed that all eligible borrowers can avail the facility of KCC as and when they approach banks for the fresh loans.
On this issues petitioner submitted that the State govt. should arrange to provide Kisan Credit Cards to all farmers along with substantial Cash Credit as per the need by increasing the cash credit outlay, which is required at present Rs. 3000 Crores instead of current years cash credit outlay which was only Rs. 1450 Crores. Hence, there is need of substantial increase in the cash credit outlay, so that the Kisan Credit Cards will be of any use to the farmers.
On the issues of Crop Insurance the State Government claimed that in the year 2006-07 nearly 3.15 lakh farmers were included in the Crop Insurance Scheme, mostly of them are cotton growers but PIL Petitioner pointed out that The crop insurance benefit is available only to the 32% farmers. The State should take necessary steps to include all farmers in the crop insurance scheme and arrange to extend the benefits thereof.
On the issues of Direct Assistance to farmers, the Government claimed that
60,000 beneficiaries are selected for Rs.25000 assistance and the assistance of Rs.66 crores is given to 57,000 beneficiaries which includes distribution of bullock pairs, electric/petro kerosene pumps etc.
However, PIL Petitioner pointed out that There are serious complaints of malpratices and irregularities in the selection of beneficiaries and also in the quality of items provided in this scheme of direct assistance to the farmers. All the complaints to be investigated through CID or special branch of police and guilty officials must be prosecuted and punished. In view of such complaints, State to review the scheme and to provide direct cash benefit to the farmers instead of the items being provided by the Agriculture Deptt. under the scheme. The scheme of incentives needs to be reviewed as there are large scale of complaints in the seed replacement and cropping intensity. There are complaints that, the beneficiaries selected under the Well Digging Programme are selected by political interference. Hence, the scheme be reviewed suitably.
At the time of earlier hearing on 04th Oct. 2007 the Hon’ble High Court while examining the above affidavit of the Government categorically observed “……………… Waiver of loan and evolving of methodology and schemes by itself, in our view, would not provide long lasting solution or eradicate the serious issue of commission of suicides by farmers. So a detailed affidavit to be filed again by the State Government stating the steps to be taken in light of suggestions made by the Petitioner”.
Accordingly State Government again filed affidavit on 30th November, 2007 submitting before the Court that (1) Since 01.07.2006 total investment envisaged in the package is Rs.3750 crores. Of this, waiver of interest and other services are less than 20% of the total package. Investment proposed for assured irrigation – 2177 crores to create an irrigation potential of 1.59 lakh hectare. Allocation till today Rs.1866 crores, Rs.810 crores spent creating irrigation potential of 45860 hectare. 15 major and medium projects, 557 minor projects will be completed. For sprinkler irrigation programme target of Rs.78 crores fixed. Under National Horticulture Mission Rs.225 crores are to be spent. 4126 farm families have been assisted with 2 milch animals and 6891 farm families under the calf breading programme, under state package 5438 beneficiaries are assisted with milch animals. 4305 groups have been assisted with sheep and goats. The dairy programme is planned. In response to the above affidavits of the Government the Petitioner categorically pointed out that The State must provide details of its claim regarding creation of the irrigation potential. It must make a statement that the amount received from the Central Government was spent on new projects and not in the payment of the outstanding of the contractors pertaining to the earlier bills of those contractors for the period earlier to the declaration of package. The State should submit the detailed scheme / GR pertaining to the Sprinkler Irrigation Programme and should submit the information as to how much amount out of Rs. 78 Crores is targeted to be spent for the 6 suicide prone districts of Vidarbha. The State should submit the detailed scheme / GR pertaining to the National Horticulture Mission and should submit the information as to how much amount out of Rs. 225 Crores is targeted to be spent for the 6 suicide prone districts of Vidarbha. There is no mention about this.Govt. to review the success of the scheme of providing milk animals so far provided to the farm families or the groups. There are large complaints about the price / cost of the animals purchased, which is found to be doubled than the subsidy elements. Hence, it is need of hour to review the scheme. It is suggested to give cash benefit to the distress farmers so that they can buy the milk animals of their choice as suitable to the climatic conditions prevailing in the villages.
On the occasion of last hearing on 07th December, 2007, in which the Advocate General Adv. Sh. Ravi Kadam, appealed before the Hon’ble Court and pleaded to dismiss and dispose off the present PIL but Hon’ble Court refused and declined to accept the plea made by the Adv. General and was pleased to direct the petitioner to submit the chart / statement in details showing the issues which are required to be dealt with by the respondents having regard to the statements made by the respondents in several affidavits filed from time to time, so far in matter of this grave importance as it is pertaining to the life & liberty of the poor farmers who all are constraints to commit unfortunate suicides which are continued since last couple of year in Vidarbha inspite of tall claim made by the Government. Accordingly, the PIL Petitioner filed the detailed statement / chart as above. The Petitioners counsel Adv. Firdos Mirza and Adv. Vinod Tiwari also submitted that the Govt. Resolution dated 16.12.05 (pg.156) is issued for establishment of the Vasantrao Naik Sheti Swawalamban Mission but only two posts are created i.e. the Director General and his Driver no other staff is given. May be this is the reason why no officer is ready to work in this post and the implementation of the package is adversely affected. Hence the State may kindly be directed to take steps for making the provision of additional staff as required in addition to appointment of permanent Director General. In regard to food security the State should include the farmers in distress in the scheme of “Antyodaya” under Public Distribution System or any other similar food security scheme.
c) The State Govt. before the Hon’ble Division Bench at
As per the High Court Order, the State Government is required to its affidavit in reply to the today detailed chart/ statement submitted by the PIL Petitioner in the High Court today.
The matter will be listed for further hearing on 1st February, 2008 before the Division Bench of High Court at
Kindly arrange to release this important news in your esteemed daily.
Thanking you,
Yours faithfully,
Santosh Netam,
Media Incharge, Vidarbha Jan Andolan Samiti,
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT
Criminal Writ Petition (PIL) No.57/2006
PETITIONERS : Kishor Tiwari and 1 another
/VERSUS/
RESPONDENTS : The State of
9 others.
STATEMENT / CHART SUBMITTED BY THE PETITIONER IN COMPLIANCE
WITH THE ORDER DATED 07.12.07 PASSED BY THIS
| Dates | Chronological Events | Petitioners submission w.r.t. Issues required to be dealt with by the respondents |
| Feb.06 | The instant petition highlighting issue of unfortunate incidence of farmers suicides and inaction of the state machinery was filed. | |
| 24.02.06 | This | |
| 05.06.06 | The respondents were granted last chance to file reply. | |
| 14.06.06 | Because of the failure of respondents to file reply, the | |
| 11.07.06 | The respondents tendered apology, hence the order of cost was recalled. The government was directed to display the information regarding all steps taken by the government to avoid farmers suicide. It was directed that the information on the web site should include not only the steps taken but the information regarding the effect of such steps taken, the benefits and the beneficiaries of such steps and all the relevant information. | |
| Affidavit dt. 26.06.06 | The State filed affidavit in reply dated 26.06.06 having following statements:- | |
| | a) The state government is also implementing the directions and suggestions given by the Hon’ble High Court by its judgment dated 5th May, 2006 in addition to implementation of the package announced for the farmers in Vidarbha. (para 8) b) the government is promoting Soyabean and other horticulture crops as alternate to cotton crop. (para.9b) c) The State Agriculture Universities have not recommended cultivation of Bt. Cotton and the agriculture department is also not recommending yet. (para 9c) d) There are 63 full time and 885 part time Inspectors are appointed in the state of e) The rate of Bt. Cotton seeds was reduced (para 9h) f) Rs.2.31 crore is to be spent on training and demonstration to be given to the farmers for improving productivity of cotton crop and for reducing the cost of cultivation. This training is in respect of varieties of cotton approved by the agriculture universities of the state, which does not include Bt. Cotton (para 9j). g) Rs.240 crores have been disbursed to the farmers under the scheme of rescheduling of loans and waiver of interest. (para 9k) h) Subsidy of Rs.1000/- per hector subject to a maximum of 2 hectors is extended. The scheme of community marriage is floated. The secondary occupation through animal husbandry, water conservation and integrated agricultural development is being promoted (para 9m). g) The government has decided to make a village wise survey to identify all the families which are in a situation of acute distress. (para 9n) h) One of the serious complaints relate to the provision of assessment to the suicide affected family. It is true that due to procedural issues many families did not get such assistance. The government has undertaken review of the suicide cases where the assistance has not been made available by constituting district level committees. In the review process almost 1000 families were given assistance of Rs.1,00,000/- each. (para 9o) i) To provide crop loans at the rate of 6% interest. (para 9p). j) The government has taken a decision that the farmers who have taken loan from unlicensed money lenders should not be under any obligation to repay these loans. (para 9q) k) The state government has established Vasantrao Naik Sheti Swavalamban Mission for effective implementation of the entire package to address effectively the issue of farmer’s suicide. A senior government officer has been posted as the Director General of the aforesaid mission. (para 9r) | Petitioner would like to refer to the Judgment dated 05.05.2006 delivered by Hon’ble Division Bench at Bombay Interest on outstanding loans to be written off Rs.61 crores. The principal amount to be rescheduled over a period of next 5 years Rs.203 crores. To ensure implementation of the package in letter and sprit, the government will nominate an IAS Officer in the suppertime scale and designate him as Director General of the scheme. The Petitioner’s humble submissions that :- The State since last 2 ½ years has failed to provide a full time Director General for implementation of the package. As on today also Commissioner Amravati is holding additional charge. Till today about six officers are changed though section 3 of the The State has to immediately make arrangement for appointment of full time Director General for full tenure in compliance with the above judgment. According to affidavit dated 03.09.2007 the State has paid Rs.825 crores from P.M. package and Rs.240 crores from State package towards interest waiver. The total overdue as on 30.6.06 was Rs.1407 crores. The State has to make it clear how the amount as reflected in the judgment dated 05.05.2006 has increased in multi folds ? The State must place on record the results of village wise survey made by it to identify all the families which are in a situation of acute distress, along with the action taken report regarding the causes came on record for the distress. |
| 04.08.06 | The petitioner made various suggestions long term and short term for betterment of the farmers. Immediate reliefs / steps required. i) Establishment of the Nodal office at Yavatmal. ii) Provision for credit facilities. iii) Food security iv) To create atmosphere of faith about government scheme in the farmers. Long Term measures. i) Reasonable support price to the farm products. ii) Crop insurance scheme. iii) Periodical review of the implementation iv) Educating the farmers in respect of changing weather, changing crop system. v) Quarterly audit of the funds disbursed. | |
| 07.08.06 | A) The government has made web site operational bearing information about the rehabilitation steps taken by the state. The contents of the web site are i) causes of farmers suicides – reports of TISS, Mumbai, IGIDR, Mumbai, Yashada, Pune. ii) Overview of special package. iii) Government resolutions about implementation of package. iv) Status of implementation of various measures in relation to relief and rehabilitation. v) Link of web sites of six Collectorates under the special package. vi) Links of web sites of concerning departments. b) The Collectors of district under package or directed to upload taluka wise information regarding the implementation of various measures under the special package. The collectors are also instructed to make available village wise list of beneficiaries at the Tahsil and Block offices for public inspection and also publicize this through their respective web sites which would be available as link sites. | The State has to make a statement that the details about the beneficiaries along with their names is uploaded to the website as till today the petitioner could not found it on the website. It has to also make a statement that the website is updated. |
| Order dt. 07.08.06 | After considering the affidavit dated 07.08.2006, the | |
| 13.07.07 | The learned APP was directed to prepare synopsis giving chronology of steps taken by the concerned authorities on the basis of suggestions/scheme evolved by the mission or any of the competent authority in this regard including updating website. | |
| Affidavit dt 02.08.07 | In its affidavit dated 02.08.2007, State submitted before the Hon’ble Court that – a) The web site is being updated from time to time. It updated upto 30th June, 2007. b) The suggestions given by petitioners have been replied, giving details of steps taken by government. c) The state government is not giving compensation but providing ex-gratia assistance of one lakh to the family of the farmers who committed suicide. d) State government is preparing detailed guidelines in view of National Agriculture Policy. District Level Agriculture Management Training Agency has been established. d) Strategy Research and Extension Plans for all districts are prepared. e) National Insurance Scheme is being implemented with additional benefits. f) Prime Ministers Special Rehabilitatoin package provides for ex-gratia assistance, debt relief to farmers, credit flow, interest waiver, assured irrigation, seed replacement, micro irrigation, extension services and subsidiary income schemes. Status of implementation of the packages are on the website. | Judgment dated 05.05.2006 directed the State to take a decision on whether the compensation fixed at Rs.One lacs should be suitably enhanced to ensure that a more realistic amount is made available to the members of the family of a deceased cultivator. The State Govt. till today has not increased the amount but now are stating that it is The State has to take a decision in favour of the farmers. |
| 06.08.07 | This | |
| Affidavit dt. 03.09.07 | In its affidavit dated 03.09.2007, the State submitted that - (1) The state package provides for :- a) Arrangement for fresh crop loan b) Subsidy on the crop insurance premium c) Financial assistance to farmers for enhancing production and productivity. d) Promotion of joint farming in cotton. e) Encouraging subsidiary occupation like Dairy, Poultry etc. f) Repayment of amount from Capital Formation Fund (2) The Prime Ministers package aims at:- a) Establishing a sustainable and viable farming and livelihood support system through debt relief to farmers. b) Improved supply of institutional crop credit. c) Micro irrigation d) Assured irrigation facilities. e) Watershed management. f) Better extension and farming support etc.
(3) The total number of farmers in the six affected districts is 1764438 and cotton growing farmers 1205282.
(4) Cash Credit :- The survey conducted by the month of May, 2006 shows that the demand for loan by the farmers in six districts is nearly Rs.2975/- crores and during last financial year the agricultural credit amounting to Rs.2012 crores is distributed. The need of cotton growing farmers came out to be Rs.1200 crores. During 2007-08 till now Rs.1254 crores loan is distributed to 4.74 lakh farmers. Rs. 396 crores were distributed as refund of 3% of share capital under cotton monopoly scheme in the year 2006-07. In 2005-06 Rs.880 crores were distributed as annual credit which was increased Rs.2012 crores in the year 2006-07.
(5) Procedure of repayment of Loan:- a) The outstanding amount of Rs.1407 crores was overdue on 30th June, 2006 and was rescheduled. b) Interest waiver of Rs.825 crores was given. c) One year moratorium is given for the repayment of loan amount but for the loan disbursed during 2006-07 borrowers were to repay the loan before 31.3.07.
(6) Kisan Credit Card:- a) 2005-06 6.59 laks KCC distributed. b) 2006-07 3.80 laks KCC distributed. c) All eligible borrowers can avail the facility of KCC as and when they approach banks for the fresh loans. (7) Crop Insurance:- In the year 2006-07 nearly 3.15 lakh farmers were included in the Crop Insurance Scheme, mostly of them are cotton growers. (8) Direct Assistance to farmers: 60,000 beneficiaries are selected for Rs.25000 assistance and the assistance of Rs.66 crores is given to 57,000 beneficiaries which includes distribution of bullock pairs, electric/petro kerosene pumps etc. (9) Other incentives:- a) Promotion of Organic Agriculture – Rs.9.59 crores spent and further provision of Rs.7.95 crores is made b) Joint farming c) Seed replacement and cropping intensity. d) digging of 64 thousand wells and farm ponds is planned. | The affidavit shows that the outstanding amount of Rs.1407 crores overdue loan as on 30.06.06 was rescheduled. The interest waiver of Rs.825 crores has been given from P.M. package and of Rs.239.12 crores from the State package. This amount is much more than mentioned before the Hon’ble Division Bench at The state has to explain that how the amount is increased and whether the borrower/farmer is enquired as to whether the amount is outstanding against him. The State shall also have to explain that what was the mechanism for cross checking the amount demanded by the banks ? The Cash Credit Facility provided to the farmers in 6 districts of Vidarbha is substantially reduced during the year 2007-08. As against the demand of Rs. 3,186 Crores, only Rs. 1,254 Crores were distributed to the farmers. It is required that, all the farmers has to be provided with need based cash credit facilities, to in order to avoid the farmers being trapped in the net of private moneylenders and exploiters. The affidavit of Govt. shows that, there is considerable reduction in the cash credit outlay being made available for the year 2007-08. The concrete steps are required to be taken to increase the cash credit outlay atleast to Rs. 3000 Crores, so that maximum farmers to get advantage of cash credit facilities from the banks. As the outstanding amount overdues till continues, State to take further steps to reschedule the outstanding amount overdue for a further period of atleast 3 years, as the farmers needs such support at this stage. The state has to make a positive statement that the period of moratorium and interest rate is incompliance with the policy and guidelines of Reserve Bank of The State govt. should arranged to provide Kisan Credit Cards to all farmers along with substantial Cash Credit as per the need by increasing the cash credit outlay, which is required at present Rs. 3000 Crores instead of current years cash credit outlay which was only Rs. 1450 Crores. Hence, there is need of substantial increase in the cash credit outlay, so that the Kisan Credit Cards will be of any use to the farmers. The crop insurance benefit is available only to the 32% farmers. The State should take necessary steps to include all farmers in the crop insurance scheme and arrange to extend the benefits thereof. There are serious complaints of malpratices and irregularities in the selection of beneficiaries and also in the quality of items provided in this scheme of direct assistance to the farmers. All the complaints to be investigated through CID or special branch of police and guilty officials must be prosecuted and punished. In view of such complaints, State to review the scheme and to provide direct cash benefit to the farmers instead of the items being provided by the Agriculture Deptt. under the scheme. The scheme of incentives needs to be reviewed as there are large scale of complaints in the seed replacement and cropping intensity. There are complaints that, the beneficiaries selected under the Well Digging Programme are selected by political interference. Hence, the scheme be reviewed suitably. |
| 04.10.07 | The | |
| Affidavit dt. 30.11.07 | In its affidavit dated 30.11.07, the State submitted that :- (1) Since 01.07.2006 total investment envisaged in the package is Rs.3750 crores. Of this, waiver of interest and other services are less than 20% of the total package. (2) Investment proposed for assured irrigation – 2177 crores to create an irrigation potential of 1.59 lakh hectare. Allocation till today Rs.1866 crores, Rs.810 crores spent creating irrigation potential of 45860 hectare. 15 major and medium projects, 557 minor projects will be completed. (3) For sprinkler irrigation programme target of Rs.78 crores fixed. (4) Under National Horticulture Mission Rs.225 crores are to be spent. (5) 4126 farm families have been assisted with 2 milch animals and 6891 farm families under the calf breading programme, under state package 5438 beneficiaries are assisted with milch animals. 4305 groups have been assisted with sheep and goats. The dairy programme is planned. | The State must provide details of its claim regarding creation of the irrigation potential. It must make a statement that the amount received from the Central Government was spent on new projects and not in the payment of the outstanding of the contractors pertaining to the earlier bills of those contractors for the period earlier to the declaration of package. The State should submit the detailed scheme / GR pertaining to the Sprinkler Irrigation Programme and should submit the information as to how much amount out of Rs. 78 Crores is targeted to be spent for the 6 suicide prone districts of Vidarbha. The State should submit the detailed scheme / GR pertaining to the National Horticulture Mission and should submit the information as to how much amount out of Rs. 225 Crores is targeted to be spent for the 6 suicide prone districts of Vidarbha. There is no mention about this. Govt. to review the success of the scheme of providing milk animals so far provided to the farm families or the groups. There are large complaints about the price / cost of the animals purchased, which is found to be doubled than the subsidy elements. Hence, it is need of hour to review the scheme. It is suggested to give cash benefit to the distress farmers so that they can buy the milk animals of their choice as suitable to the climatic conditions prevailing in the villages. |
| 07.12.07 | The | As submitted above. |
| | | In addition to above, the Petitioner humbly point out and submit that :- a) The Govt. Resolution dated 16.12.05 (pg.156) is issued for establishment of the Vasantrao Naik Sheti Swawalamban Mission but only two posts are created i.e. the Director General and his Driver no other staff is given. May be this is the reason why no officer is ready to work in this post and the implementation of the package is adversely affected. Hence the State may kindly be directed to take steps for making the provision of additional staff as required in addition to appointment of permanent Director General. b) In regard to food security the State should include the farmers in distress in the scheme of “Antyodaya” under Public Distribution System or any other similar food security scheme. c) The State Govt. before the Hon’ble Division Bench at |
| | | Based on the farmers family survey report dated 15.06.2006 the Govt. website demonstrates that 92,456 farmers families are facing serious ailments/illness, it is the need of hour to support these families by issuing Health Cards so that they can approach all the Government hospitals without any fear of not having money. The Survey report dated 15.06.2006 further indicated that out of 17,64,438 farmers families surveyed in 6 suicide prone district of Vidarbha there are 4,34,291 families which are in extreme distress category. These distress families needs support of food security and therefore, Govt. must come with the scheme of supply of food security at par with the Antodaya Scheme of Supply of Food grains under PDS or any other suitable scheme for the welfare of these 4,34,291 families in extreme distress categories in which the unfortunate incidence of suicides are occurring. The Petitioner has submitted detailed Memorandum to Hon’ble Chief Minister of |
ADV. FIRDOS MIRZA – ADV. VINOD TIWARI
Dt. 20/12/07 COUNSEL FOR THE PETITIONERS.
