Farmers wants execution not mere announcement

 Farmers wants loan. Not loan waivers

It is a fact that Agriculture is a noble profession that feeds the whole world. However, those sitting at the responsible positions are remaining indifferent to the plight of those who produces their food. Of course, the Central Government and State Governments in India have come up with various legislations, schemes, and initiatives to promote and assist the farmers. However, it is a pity that most of their initiatives are not reaching to most of the needy and deserving farmers due to failure in execution and few of the schemes being unsuitable to the needs of the farming community as a whole. It seems the government is failing to understand the real problem of the farmers. 

Failure in the Execution
The Reserve Bank of India has included Agriculture in the priority sector for extending loans. Accordingly, 18% of the bank’s Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher to be extended for Agriculture. And within the 18% target for agriculture, a target of 8% is prescribed for Small and Marginal Farmers. However, both the Public Sector Banks (PSB) and Private Sector Banks have failed to meet the targets. In spite of the fact that agriculture being the mother of all sectors, banks are showing reluctance in extending loans to this sector. Agriculture forms only 13% of the total bank credit at the end of 2018. Therefore, the Government has to take some serious steps to make the banks comply with the rules strictly.

Similarly, the Central Government came up with a wonderful crop insurance scheme “Pradhan Mantri Fasal Bima Yojana” [PMFBY], wherein both Central and State Governments contribute more than 80% of the premium amount for the farmer. However, due to lack of interest among the regional/zonal Agricultural Officers’ in promoting the scheme, the insurance scheme’s subscription declined this year. One of the reason for decline in subscription was due to delay in the processing of insurance claims for the season 2016-17. Therefore, both state and central governments have to make sure laws and schemes are executed properly at the ground.  

Unsuitable Schemes
As per the study conducted in 2016-17 by NABARD, only 30.3% of Indian farmers availed loans from banks like institutions, and the rest of the farmers are compelled to get loans from other sources like moneylenders who charge exorbitant interest rates. When reality is like this, the loan waiver schemes announced by states like Rajasthan, Madhya Pradesh hardly helped most of  farmers. These schemes waived off loans borrowed by the farmers only from banks and do not covers loans borrowed from Individual moneylenders, which contributes large junk of loans of farmers. Therefore, such schemes cannot be considered as a solution to the plight of farmers as a whole. Most of the farmers need a loan, not a loan waiver.

Plight of farmers
The Government has to study the plight of farmers at the ground. It has to see that small & marginal farmers are not able to avail various benefits of government schemes like subsidized fertilizers, agricultural instruments, even a farmer is not able to acquire Patta for his own land in order to claim benefits of various government schemes. For availing government benefits, a farmer has to pay a bribe and wait for hours at the government offices. Such is the case with banks as well.  Most of the government officers including banks are treating the farmers unequally like they are from a different planet. Farmers are not getting the same treatment like the businessman gets from the banks. They don't get the same hospitality as the business houses get.

Want loan not loan waivers
Farmers do not want to pay bribe to the officials to avail government schemes and also do not want to keep waiting at banks for loan. Therefore, the Government has to come up with an initiative to ensure that benefit under various schemes reaches the farmers in real sense. The government needs to come up with some concrete schemes to benefit farmers at large. To sum up, farmers wants execution not mere announcement, they want real-time solution not paperwork to boast of. They want loan. not loan waivers.

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