The Maharashtra government has agreed `in principle' to give a complete loan waiver to farmers -a move that would bring stability to the Devendra Fadnavis government but at the same will leave a big hole in the state's coffers. This decision came after a six member high-power ministerial committee, constituted by the government, met members of various farmers' groups to negotiate on their demands. The farmers' groups have called off their statewide rail roko agitation on June 13 following the meeting.
Revenue Minister Chandrakant Patil said, “We have agreed in principle to a blanket loan waiver and the criteria would soon be fixed. Loans of small and marginal farmers have been waived with immediate effect.“
Maharashtra has a debt burden of Rs.3.56 lakh crore. Prior to the loan waiver, it was expected to cross Rs.4 lakh crore by the next fiscal. With the current loan waiver, the debt is set to balloon massively . The state pays a massive Rs.31,000 crore as interest annually on its loans.
Chief minister Devendra Fadnavis tweeted after the announcement, “Discussions between government of Maharashtra and representatives of farmers (have) reached a common consensus. Farmers have called off the strike.“ “Farmers and their betterment was, is and will always remain a priority .“
The government had already announced that they were planning to waive loans for 34 lakh small and marginal farmers who owned 5 acres or less and who were `out of the credit system' as they were unable to repay their loans. This waiver would have cost the state Rs.30,000 crore. Farmers' groups were not happy with this `limited' loan waiver as they felt that this would benefit only a few farmers. Fadnavis had said last week that a complete loan waiver would not be possible as it would cost the state more than one lakh crore. However, the ministerial committee on Sunday said the state would go in for a complete loan waiver. Patil, however, said that there would be conditions attached to this waiver. The waiver would be given after the government and farmers' groups formed a committee which would fix the eligibility criteria.
The loan waiver was designed for `genuine farmers' that is farmers whose only source of income is farming. So, those farmers who have a double income, say a teacher who is also into farming, would not be eligible for the waiver.
Both the government and farmers' representatives have agreed that `only genuine farmers' who are not businessmen or salaried class, can avail themselves of the waiver.
Farmers' leader Raju Shetti, who took part in the discussions, said, “It is the common people's money that is in the treasury of the government. So, we want to ensure that the rich don't get the benefit of this loan waiver.“
Shetti, an ally of the BJP, however, added that if the waiver was not announced by July 25, when the Maharashtra's monsoon assembly session begins, they would resume their agitation again.
The state has also agreed to fix a minimum support price for milk. Milk co-operatives would have to share their profit with farmers on a 70-30 ratio from June 30.
The state has also agreed to take back all criminal cases against farmers in the recent agitation, except cases against those who indulged in looting.
Regarding the implementation of the Swaminathan Committee report, Patil said that since it is under the purview of the Centre, a delegation from the state would soon go to Delhi to persuade the Centre to implement it.
Revenue Minister Chandrakant Patil said, “We have agreed in principle to a blanket loan waiver and the criteria would soon be fixed. Loans of small and marginal farmers have been waived with immediate effect.“
Maharashtra has a debt burden of Rs.3.56 lakh crore. Prior to the loan waiver, it was expected to cross Rs.4 lakh crore by the next fiscal. With the current loan waiver, the debt is set to balloon massively . The state pays a massive Rs.31,000 crore as interest annually on its loans.
Chief minister Devendra Fadnavis tweeted after the announcement, “Discussions between government of Maharashtra and representatives of farmers (have) reached a common consensus. Farmers have called off the strike.“ “Farmers and their betterment was, is and will always remain a priority .“
The government had already announced that they were planning to waive loans for 34 lakh small and marginal farmers who owned 5 acres or less and who were `out of the credit system' as they were unable to repay their loans. This waiver would have cost the state Rs.30,000 crore. Farmers' groups were not happy with this `limited' loan waiver as they felt that this would benefit only a few farmers. Fadnavis had said last week that a complete loan waiver would not be possible as it would cost the state more than one lakh crore. However, the ministerial committee on Sunday said the state would go in for a complete loan waiver. Patil, however, said that there would be conditions attached to this waiver. The waiver would be given after the government and farmers' groups formed a committee which would fix the eligibility criteria.
The loan waiver was designed for `genuine farmers' that is farmers whose only source of income is farming. So, those farmers who have a double income, say a teacher who is also into farming, would not be eligible for the waiver.
Both the government and farmers' representatives have agreed that `only genuine farmers' who are not businessmen or salaried class, can avail themselves of the waiver.
Farmers' leader Raju Shetti, who took part in the discussions, said, “It is the common people's money that is in the treasury of the government. So, we want to ensure that the rich don't get the benefit of this loan waiver.“
Shetti, an ally of the BJP, however, added that if the waiver was not announced by July 25, when the Maharashtra's monsoon assembly session begins, they would resume their agitation again.
The state has also agreed to fix a minimum support price for milk. Milk co-operatives would have to share their profit with farmers on a 70-30 ratio from June 30.
The state has also agreed to take back all criminal cases against farmers in the recent agitation, except cases against those who indulged in looting.
Regarding the implementation of the Swaminathan Committee report, Patil said that since it is under the purview of the Centre, a delegation from the state would soon go to Delhi to persuade the Centre to implement it.
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