With farmers across the central region complaining of difficulties in marketing their produce in view of the lockdown, pleas for crop loan waiver have grown shriller.
Some of the farmers’ organisations have revived the demand on the grounds that most farmers in the region have sustained losses continuously over the past 7-8 years, except for two years, due to vagaries of nature. The good harvest last year cannot help them recoup the losses they had sustained and repay the farm loans with accumulated interest, they contend.
“Farmers have sustained crop losses since 2012, except for a couple of years. But the good crop in two seasons will not help them emerge out of debt,” said P. R. Pandian, president, Tamil Nadu All Farmers Coordination Committee,
“We have had a good samba season; the paddy harvested in the late samba crop is yet to be fully procured. Similarly, there has been good yield in horticulture crops and vegetables, thanks to the good monsoon last year. But the COVID-19 pandemic has struck at a time when fruits and vegetables were ready for harvest. Farmers are unable to market the produce,” Mr. Pandian said justifying the demand for a loan waiver.
Even though the government has organised transport and other facilities for farmers, demand and off take have been poor. Nearly 80% of the produce has perished in the farm, Mr. Pandian claimed and demanded that the government waive crop loans up to ₹2 lakh sanctioned by both cooperative societies and commercial banks, without distinguishing between small and big farmers.
Echoing his views, Puliyur A. Nagarajan, president, farmers’ wing of the Tamil Maanilla Congress, said that farmers who had grown banana and other fruits, sugarcane, betelvine, vegetables, maize and oil seeds have all been hit badly by the lockdown as they were not able to transport and sell the produce in the markets. Similarly, dairy farmers and those who reared other livestock have also been badly affected due to poor sales. The Centre should order a waiver of all crop loans in view of the distress situation faced by farmers, he demanded.
However, a few farmers’ representatives observe that farmers deserve support not just due to the situation arising out of COVID-19 pandemic but for long term recovery. Mannargudi S. Ranganathan, general secretary, Cauvery Delta Farmers Welfare Association, points out that many farmers in the delta were yet to recover from Cyclone Gaja and not able to repay their loans. “The government can consider restructuring of the loans and allow interest-free repayments in easy installments,” he suggested.
Arupathi Kalyanam, president, Federation of Farmers’ Associations of Delta Districts, feels that farmers should be extended support for long term revival of the agriculture sector. “High interest rates are the problem. Even though the government offers interest subvention, it has not been adequate. All crop loans up to ₹3 lakh should be made interest-free. All other farm sector loans should be extended at four per cent interest,” he demanded.
Interest dues and penal interest should be written off with respect to non-performing assets in farm sector. Only the principle should be recovered after deducting the repayments already made by the farmers, he suggested.
